California State Fund Gets Thousands for Workers' Comp Fraud Case

By Ashley Van Leuven

Published on April 23, 2007

Jose D. Estrada, a machine operator at Kuhn Hay in El Centro, pleaded guilty to one count of felony workers' compensation insurance fraud in the state of California. He was given five years of probation in addition to the monetary penalty.

Estrada reported an injury to his left ankle after he was struck from behind by a fork lift at work in April 2003. Later that year, when Estrada's employer saw him walking without the orthopedic boot that he was supposed to wear for his injury, he reported him to State Fund.

A private investigator hired by the State Fund department to conduct surveillance on Estrada discovered that Estrada only wore the orthopedic boot when he went to physical therapy. The investigator reportedly saw Estrada put the boot on just before he walked into a physical therapist's office. After the visit, Estrada removed the boot in the parking lot. Estrada was also said to have used a cane during the appointment. State Fund concluded that Estrada wore the boot and used the cane during physical therapy visits to exaggerate his ankle injury.

Last week, Estrada paid State Fund $18,000 as part of the total restitution. He was also ordered by the court to pay a $100 fine.

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