Buttonwillow, California Warehouse Employee Arraigned for Alleged Staff’ Compensation Insurance coverage Fraud, Division of Insurance coverage Reviews

Feb. 4, 2021 – BAKERSFIELD, California – Crescencio Velasco Covarrubias, 45, of Buttonwillow, has been charged with multiple insurance fraud charges after allegedly failing to provide information previous work-related injuries in order to receive undeserved employee compensation benefits.

Covarrubias filed a claim for damages for an injury he suffered on June 26, 2017 while employed in a retail warehouse. Covarrubias claimed he injured his left ankle, foot, heel and back when he misstepped while sweeping. As part of the application process, Covarrubias was responsible for reporting previous violations as they could have affected the outcome of the current application.

An investigation conducted by the California Department of Insurance found that Covarrubias filed a claim for a bilateral knee, neck and back injury and injuries to the left foot and ankle that was being processed by another insurance company on November 11, 2010. These injuries were sustained when Covarrubias drove an almond-laden tractor shuttle and was hit by another tractor shuttle. Covarrubias’ injuries were treated by his primary attending physicians and he was awarded a $ 90,000 settlement.

The investigation into the June 2017 injury claim revealed that Covarrubias not only failed to report the November 2010 injuries, but also denied previous injuries to his left foot, ankle, or back when specifically requested. Covarrubias’ fraudulent statements resulted in a loss to his employer’s insurance company of more than $ 87,000. If Covarrubias had reported the injuries from November 2010, the insurance company would have conducted an investigation and likely denied or amended the current claim, thereby preventing Covarrubias from receiving benefits to which he was not entitled.

Covarrubias surrendered himself and was charged on January 7, 2021. He is scheduled to return to court on March 15, 2021. The Kern County Attorney’s Office is pursuing this case.
Source: DOJ