Fraud of the Week
July 29, 2019
Workers' Compensation Embezzlement — California
Amount: $995,000
A Los Angeles man has been sentenced yesterday to more than ten years in state prison for embezzling nearly one million dollars from victims who were attempting to invest money they received after suffering workplace injuries or illnesses. The fraudster was ordered to pay restitution in the amount of $995,000 to the twelve victims. The scheme involved the fraudster using a series of transactions to reroute money that came from workers' compensation settlements and was intended for investment into a separate personal account. The fraudster pleaded no contest to 15 felony counts of money laundering and 10 felony counts of grand theft by embezzlement.