Calif. Man Sentenced for Workers’ Comp Fraud

March 22, 2005

Gregg Leo Curwick, of Rancho Cucamonga, California, has been sentenced by the Kern County Superior Court for workers’ compensation insurance fraud after a joint investigation by the California Department of Insurance Fraud Division, the Kern County District Attorney, and the State Compensation Insurance Fund.

His sentence, handed down March 18, includes one year in the Kern County jail, $63,870 in restitution payments to 15 former business clients and SCIF, as well as a $4,420 fine.

Curwick self-surrendered in Bakersfield on Jan. 31, 2005. The investigation found that from 2001 through 2002, Curwick managed two different temporary employment businesses before becoming the co-owner and operations manager of A-1 Staffing in February 2003. All three business enterprises involving Curwick were in Bakersfield.

In November 2003, Curwick reportedly produced two fictitious workers’ comp coverage certificates to construction business clients of A-1 Staffing, claiming that A-1 Staffing employees were covered by workers’ comp insurance.

After receiving the certificates, both construction businesses learned from SCIF that A-1 Staffing’s workers’ comp policy was cancelled in October 2003. When investigators contacted SCIF regarding the fictitious coverage certificates, they also learned that Curwick’s two prior temporary employment businesses terminated operations while owing SCIF approximately $33,000.

The investigation indicated that Curwick pocketed monies paid by clients for workers’ comp insurance premiums and employee income taxes. The investigation also revealed that Curwick underreported A-1 Staffing’s monthly payroll and job classifications to SCIF to avoid paying additional workers’ comp premium payments.

Some A-1 Staffing clients who had workers’ comp policies with SCIF for regular employees and had already paid A-1 Staffing for workers’ comp coverage were required to reimburse SCIF for temporary employees hired through A-1 Staffing.

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