Pride Industries Employee Arrested for Workers’ Compensation Fraud

June 16, 2006

A Sacramento man has turned himself in for insurance fraud.

Darren Stanton was a long term employee of PRIDE Industries, an employer of people with disabilities, according to LWP Claims Solutions Inc. On March 28, 2005, Stanton suffered an accepted injury to his right shoulder. As a result of his injury, he underwent shoulder surgery and received temporary disability from LWP Claims Solutions Inc. Based on a review of facts, LWP Claims Solutions began to suspect that the injured employee was working while collecting temporary total disability benefits. At that time, the case was referred to the company’s strategic partner for SIU, Probe Information Services. It was learned through a thorough investigation that Stanton was working while receiving TTD benefits. Upon receipt of the information LWP Claims Solutions stopped TTD benefits.

Based on the facts of the case, a referral was made by LWP/Probe to the California Department of Insurance Fraud Division. After conducting an investigation to confirm the facts the Fraud Division presented the case to the Sacramento County District Attorney who issued an arrest warrant. Derrick Stanton was charged with two felony counts of Insurance Code 1871.4 (a)(1).

If convicted, Stanton faces imprisonment in county jail for one year, or in state prison for two to five years, or by a fine not exceeding $150,000 or double the value of the fraud, whichever is greater, or by both imprisonment and fine.

This investigation was conducted as part of an aggressive SIU program used by LWP Claims Solutions, an alliance with Probe Information Services that has been ongoing since October 2004.

Source: LWP

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