State Fund Wins $5.5 Million Judgment in Workers' Compensation Fraud Case

Business Wire, April 11, 1995

SAN FRANCISCO--(BUSINESS WIRE)--April 11, 1995--Concluding one of the largest fraud cases in the history of California's workers' compensation system, State Compensation Insurance Fund has won a court judgment to collect more than $5.5 million in damages from an Orange County man whose operations once spanned seven cities.

State Fund obtained the U.S. District Court (Los Angeles) judgment against Vincent M. Marconi, 63, of Seal Beach (CA), who participated in a scheme using more than 50 fictitious names, including the names of deceased persons, to fraudulently obtain workers' compensation insurance policies for temporary employment businesses in Los Angeles, San Diego, Ontario, City of Commerce, Anaheim, Santa Ana and Bell Gardens.

California's largest provider of workers' compensation insurance, State Fund won the civil judgement under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act.

"This judgement underscores our commitment to protect the interests of honest employers and the integrity of California's workers' compensation system," said State Fund President Ken Bollier. "We will continue to aggressively investigate reports of suspected fraud and other abuses at any level."

Marconi and his co-defendants established numerous temporary employment agencies, often using the name of a deceased person to register a fictitious business name, apply for a business license and obtain an employer tax identification number. They paid only a small fraction of the proper policy premiums by misrepresenting the number of employees, amount of payroll and employee classifications as well as prior history of workers' compensation insurance and claims. Marconi also faces criminal mail fraud charges filed by the U.S. Attorney's Office in Los Angeles, according to Assistant U.S. Attorney Ronni MacLaren. He is expected to be returned in April or early May to the U.S. from England where he was arrested, MacLaren said.

The District Court judgment, which comes three years after State Fund filed a lawsuit, also rescinds the workers' compensation insurance policies for the companies operated by Marconi and his co-conspirators, including West Coast Personnel, Inc.

State Fund's anti-fraud program addresses all aspects of fraud, including employer, claimant, medical and legal. State Compensation Insurance Fund is California's largest provider of workers' compensation insurance with more than 255,000 policyholders. Established in 1914, State Fund is a non-profit, public enterprise that assures the availability of workers' compensation insurance to all California employers and competes with private insurance carriers.

CONTACT: State Compensation Insurance Fund

Charles Savage, 415/565-1237

Healy Partners

Jim Zelinski, 415/546-6166