D.A. Sets Up Fund for Workers’ Fraud Cases : Law enforcement: Businesses will be asked to contribute the money needed for prosecutions. Some critics fear that the office’s efforts could favor the donors.

Despite concerns about favoritism toward contributors, the Ventura County district attorney’s office has established a fund to raise money from private businesses for prosecution of workers’ compensation fraud.

The fund--which officials said is the first in the state aimed at obtaining private money for criminal prosecutions--was set up this month after the attorney general’s office ruled that it would be legal, with certain restrictions.

Dist. Atty. Michael D. Bradbury has said that without such contributions, he will not be able to prosecute workers’ compensation fraud because of state and county budget cuts.

The Legislature permitted criminal prosecution of workers’ comp fraud in 1992, but it now is allocating only $10 million statewide for such prosecutions. Ventura County prosecutors have never taken such cases to court, Deputy Dist. Atty. John L. Geb said Monday.

“We know they’re out there,” said Geb, who is coordinating the project. “We won’t have to look very far at all.”

Although the fund has yet to receive any contributions, Geb said the concept has strong support in the business community, which first broached the idea. “A lot of people wanted us to do this,” Geb said.

But the idea disturbs some attorneys and government officials.

“It would seem that the objectivity of the D. A., acting on behalf of the people as opposed to special interests, could be compromised,” Public Defender Kenneth I. Clayman said. “It seems to put a special-interest group in an advantageous position with prosecutors, which could be very worrisome.”

Geb said the district attorney’s office will not solicit contributions to the fund, which will be controlled by the county auditor. Prosecutors will not be told who contributes. When the fund reaches $150,000--the amount needed to hire an attorney and investigator--the Board of Supervisors will be asked to allocate the money to the district attorney’s office.

“We wanted to see some kind of barrier there, so the D. A. is not dealing directly with contributors,” said Senior Assistant Atty. Gen. Rodney O. Lilyquist, who wrote the attorney general’s opinion that said the fund would be legal. “Obviously, we don’t want the D. A. prosecuting people simply because they were defrauding someone who gave money.”

Lilyquist said a similar fund could be set up for prosecuting other crimes, such as fish and wildlife violations--an area in which Bradbury also has declined to file charges for lack of funds.

The safeguards governing the workers’ comp funds may not be enough to prevent business interests from having undue influence, said Steven M. Hoffberg, a Ventura attorney who represents employees in workers’ comp cases.

“All they have to do is know that it’s being funded by the employer community,” Hoffberg said. “They’re going to forget all the workers’ comp fraud that’s going on with insurance companies denying claims fraudulently. . . . They’re only going to go after the worker who is fraudulently getting benefits.”

Clayman said that with private interests funding workers’ comp prosecutions, “there might be a temptation to deliver . . . a bias toward prosecuting those cases and satisfying those people, regardless of equities.”

Geb said prosecutors will handle workers’ comp fraud like any other case. “If we have a quality case, we will prosecute,” he said. “If we don’t, we won’t.”

He said he expects contributions to start coming in next month, after business organizations inform their members of the fund.

Robert P. Roy, president and general counsel of the Ventura County Agricultural Assn., said he believes that the fund will surpass the $150,000 goal. “We’ve been going out into the community and the response has been tremendous across-the-board,” Roy said.

The Ventura Chamber of Commerce will support the effort, chamber President Guy Wysinger said. “Workers’ comp fraud is absolutely one of the most important issues that all businesses are facing,” Wysinger said. “Until reform legislation is passed, then any kind of local action to reduce these claims would be helpful.”