City of Los Angeles Employee Arrested for Insurance Fraud

A Los Angeles city worker was arrested on suspicion of grand theft and filing a fraudulent insurance claim, according to an announcement by the California Department of Insurance.

The fraudulent claim was allegedly associated with a non-industrial injury in July 2010 during Kelvin Piazza’s employment as a wastewater collector for the city of Los Angeles, Sanitation Department.

Piazza was arrested as a result of a criminal investigation involving his disability insurance claim. The investigation revealed that Piazza returned to work full time in June 2011 and failed to notify Standard Insurance Company of his change of employment status and continued to receive and cash disability checks between June 6, 2011 and October 18, 2011 totaling $13,746.

This case is being prosecuted by the Los Angeles County District Attorney’s office. If convicted Piazza faces a maximum of five years in state prison. He is currently being held on $50,000 bail.

Source: California Department of Insurance