Counterfeit certificates leave injured workers uninsured

Certificates of insurance may not be what they appear to be.
It is difficult enough to supervise compliance on certificates,
without having to deal with criminals. What a story you will
see below.

Here’s one of the worst examples of intentional deception:

April 5, 2013

Counterfeit workers’ compensation insurance leave injured workers without benefits
Four-year investigation, hundreds of victims in 19 states and losses exceeding $700,000

LOS ANGELES – The California Department of Insurance (CDI) arrested Robinson Yang, 44, Roland Yang, 43, and Sotheany “Teny” Hul, 42, of Diamond Bar on multiple counts of theft, fraud and forgery. The three suspects are accused of producing and selling hundreds of false certificates of insurance for workers’ compensation insurance. All three were booked between March 22 and April 3, 2013 and are being held pending bail hearings.

“The greed and deception of these three individuals is egregious,” said Commissioner Jones. “This illegal activity not only left honest businesses unprotected, but also put the health and recovery of legitimately injured workers in jeopardy.”

In April 2009, the CDI Fraud Division and the Employee Development Department (EDD) began investigating Optima Staffing for defrauding their clients by producing and selling hundreds of false certificates of insurance. RJC Insurance Brokerage and Optima Staffing were allegedly selling forged certificates of insurance for workers’ compensation insurance coverage.

According to detectives, the suspects facilitate the theft by establishing three payroll service companies, Optima Staffing, United Employer Services (UES) and National Employer Services (NES), in the effort to provide a legitimate facade for their fraudulent scheme.

In addition to the insurance fraud and forged certificates of insurance, Optima also allegedly evaded income and unemployment insurance taxes. In addition to the failure to pay taxes, EDD also discovered that Robinson Yang was collecting unemployment benefits while being compensated by the Optima, UES and NES.

Media Notes
Timeline and insurance license history for Robinson Rin Yang

March 2011 – Search warrants served and evidence seized
June 2002 – CDI enforcement action and fine of $100
Nov. 2001 through July 2002 – fire and casualty broker-agent
Dec. 1997 through Nov. 2000 – fire and casualty broker-agent
July 1991 through Nov. 1996 – fire and casualty broker-agent

Please call the CDI hotline, 800-927-4357, if you have questions about insurance or believe that you or your employer has been victimized.