Los Angeles County Cracks Down on Workers’ Compensation Fraud

Los Angeles County launched a bus sign campaign Thursday to warn people about workers’ compensation fraud, as officials declared fraudulent claims have become a significant problem across the region.

The Los Angeles County District Attorney’s Office is placing signs on LA Metro buses that caution against faking work-related injuries while encouraging the public to report suspected fraudulent claims they may encounter.

District Attorney Nathan Hochman explained that workers’ compensation fraud typically involves multiple layers of deception. “A worker may exaggerate an injury. A medical provider may assist in filing the fake claim. And an attorney may process the claim,” Hochman said, emphasizing that his office will pursue all parties involved in fraudulent work injury claims.

“The three words are going to echo across this county on these Metro buses: we will prosecute,” the DA stated firmly during the announcement.

Hochman cited a recent case involving an LA Metro bus driver who allegedly staged an accident, claiming she injured her ankle while working. What proved to be her undoing was apparently overlooking that LA Metro buses are equipped with comprehensive audio and video recording systems.

“The actual video will show in court of her actually faking the fall, and then later claiming a workers’ compensation accident, for which she asked for money back,” Hochman explained. “That is a type of fake staged accident that we will prosecute.”

The District Attorney’s office highlighted another prominent case involving an LAPD officer recently charged with felony insurance fraud. Officer Christopher Brandon Carnahan of Norwalk had reported an elbow injury at work and began collecting disability payments. While receiving these benefits, Carnahan allegedly participated in physically demanding activities, including “many skydives” at Skydive Elsinore in Lake Elsinore and regular workouts at a fitness center.

According to Hochman, Los Angeles ranks among the top three cities nationwide for fraudulent workers’ compensation claims, trailing only Las Vegas and Jacksonville, Florida. This dubious distinction underscores the scale of the problem facing local authorities and businesses.

Workers’ compensation insurance is a critical safety net designed to protect employees who suffer legitimate workplace injuries. The system provides medical care and partial wage replacement while workers recover. However, fraudulent claims drive up insurance premiums for businesses and can deplete resources meant for genuinely injured workers.

The financial impact of workers’ compensation fraud is substantial. The National Insurance Crime Bureau estimates that fraud costs the industry billions annually, with those costs ultimately passed on to businesses and consumers through higher premiums and prices.

“Our goal is to protect legitimate workers that if they do get injured, to make sure that workers’ compensation is there to be that lifeline, so they can get back in the workforce,” Hochman said. “To do that, we’re going to go after the dishonest actors in this system that are causing this multi-million dollar fraud that we experience every single year.”

The public awareness campaign comes at a time when many businesses are already struggling with rising operational costs. Workers’ compensation insurance is mandatory for employers in California, making fraud prevention a significant concern for the county’s economic health.

The bus sign campaign represents just one component of what officials describe as a broader effort to combat insurance fraud throughout Los Angeles County. By increasing visibility and awareness of enforcement efforts, authorities hope to deter potential fraudsters while encouraging legitimate use of the workers’ compensation system.

Anyone with information about suspected workers’ compensation fraud is encouraged to report it to the District Attorney’s Office or the California Department of Insurance.