The District Attorney’s Office worked with the California Department of Insurance and the state’s Bureau of Investigation. The total case took about three years. The cases filed last week include conspiracy referring clients for comp, insurance fraud. Furthermore, these are all in “reckless disregard for commission of fraud.”
The state alleges this is aggravated white collar crime over $500,000 with a loss of over $1.3 million. The specific case shows that Carlos Arguello formed a shell company to refer up to 40 worker’s comp insurance and personal injury referrals. In addition, he allegedly forced attorneys to sign annual contracts for his scandalous acts.
A Wider Scheme
The OC Breeze reported on the case. Below are attorneys charged in the case from a list they compiled:
Beyond just the attorneys, prosecutors allege Arguello used cappers to bring in a minimum number of clients. This involved a monthly fee sent to the Cappers. The state accused them of distributing fliers and cards in Latino communities to bring in unwitting clients. Furthermore, the attorneys let Cappers create and submit documents under their name without review.
A Warning Sign for All
This case is a warning for everyone involved. Furthermore, it is a shot across the bow to attorneys in the state. Unprofessional behavior such as this is very inappropriate. In many cases, such referrals are illegal. Each one of these cases reduce the effectiveness of actual Worker’s Comp claims. However, it is the role of the state to clamp down on such insurance fraud. Such bad faith among attorneys is a shame and a disgrace.