Task force probing insurance fund misconduct

By Emmett Berg

July 25, 2007

State and local officials will team up in San Francisco to investigate allegations that former employees of the State Compensation Insurance Fund engaged in misconduct, it was announced today.

The official notice of the formation of a task force comprising investigators from the state Department of Insurance, the California Highway Patrol and the San Francisco district attorney's office left out the precise nature of the alleged misconduct.

The State Compensation Insurance Fund is a public, non-profit workers compensation insurer that was created to provide a "last-resort" option for companies seeking worker's compensation insurance.

Insurance investigators in April began a review of the fund a month later turned over information to the highway patrol on potential improprieties of former employees.

"At this time, the California Highway Patrol said, the State Compensation Insurance Fund has been cooperating fully with investigators," officials said in the joint statement. Highway patrollers are part of the task force because they also perform police functions for state agencies and have relevant expertise to offer investigators, CHP spokesman Tom Marshall said.

The district attorney was invited to participate because the state Department of Insurance headquarters is located here, according to officials.

The task force has created a tip line to allow anyone with information to come forward. Call (877) 620-2345 toll-free to reach the investigators.

Copyright © 2007 by Bay City News, Inc. -- Republication, Rebroadcast or any other Reuse without the express written consent of Bay City News, Inc. is prohibited.

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