A three-agency investigatory task force has been formed in the latest stage of an ongoing probe into the operations of California's state-run workers' compensation insurer, an official said today.

Announced yesterday, the combined inquiry examining the State Compensation Insurance Fund (SCIF) will include the State Insurance Department, Highway Patrol and San Francisco District Attorney's office, said Jennifer Kerns, a spokesperson for the California Insurance Department.

The group will "investigate potential personnel issues and potential inappropriate use of monies at the state fund," said Ms. Kerns.

In its joint announcement, the task force said it has established a toll free tip line 877 620-2345 that the public can use to report information pertinent to the investigation.

In March, SCIF's board--after what it said was an internal investigation--removed its president, James Tudor, and vice president, Renee Koren. Lawrence E. Mulryan has been installed as interim president.

Ms. Kerns said in April when the department began scrutinizing SCIF that the agency was "investigating any potential misuse of funds related to administrative fees." The fees, it was explained, are aid monies that business associations or individual employers can receive for mitigation and safety programs in the workplace.

The concern, said Ms. Kerns, is there may have been funds paid by the quasi-public SCIF that did not go for the items they were supposed to cover.

Yesterday's announced formation of the task force "sends a powerful message we are continuing to move forward with our investigation of the State Fund. For some time now, these three agencies have been sharing information but we've moved into a more coordinated effort between the three agencies," Ms. Kerns said.

Having such a task force is not an uncommon way of sharing resources and expertise, she noted.

In addition to the task force work, Ms. Kerns said, the department "will be releasing our own individual report in September or October, publishing our top to bottom audit of the State Fund."

Asked if the State Fund is fiscally sound, she responded, "It does not appear it has been compromised. It's early [and] we are looking at all aspects of operational structure and management structure and were also conducting a financial operations review."

SCIF provides its coverage for about 220,000 employers.

Special Reports /

Calif. SCIF Probe Expands

Related Stories

Recommended For You