State Fund Goes Undercover “Fraudnet” Catches Big Fish

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In its fifth year of operation, Fraudnet scored another win in the war against fraud. California’s State Compensation Insurance Fund, the state’s largest single provider of workers’ compensation coverage, has taken giant strides in the war against claimant, employer, medical and legal fraud since the program began in 1992.

In the latest victory, Fraudnet is responsible for a 150-count indictment handed down by a San Diego grand jury. Working with law enforcement agencies and the DOI, Fraudnet opened an undercover storefront operation under the name of South Bay Marketing. Their business? Workers’ compensation and auto accident claims referrals.

Victims, actually undercover DOI officers, were referred to doctors and lawyers. Their jobs and insurance were confirmed by State Compensation Insurance Fund workers who were expecting the calls. Although treatments received were simply exercises in form signing, some of the subsequent bills were staggering. In one instance the victim was seen in the medical facility twice, yet bills for 63 separate office visits were sent to the insurer.

Fourteen people, including one doctor, four lawyers, five chiropractors and office administrators and personnel, were arrested in the latest wave. The attorneys were Betty Chain of Sherman Oaks, Marc Duxbury of Carlsbad, Marcy Kaye of San Diego and Frederick Nameth of Glendale. The chiropractors were Jeffrey Farricielli of Beverly Hills, Clifford Glassman of North Hollywood, Mitchell Holland of San Diego, Dennis Hudgins of Oceanside and Alan Tuthill of Santee. The doctor was identified as Dr. Franklin Dulin of National City. Two office assistants at Dr. Glassman’s office, Jeanette Rodriguez and Marianne Vega, were also arrested on suspicion of insurance fraud and receiving illegal referrals. A fifteenth suspect, office administrator Victorino Biancada, is thought to be hiding in the Philippines.

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