Workers’ comp fraud is alleged
Times Staff and Wire Reports
Insurance authorities say two Southern California business executives have been charged with defrauding the state of $18 million in a workers’ compensation scam.
State Insurance Commissioner Steve Poizner said David Zahler and David Tai were charged after a 2 1/2 -year investigation of their temporary employment company, Staffing Services Inc. in Bellflower.
Zahler, who is chief executive, and Tai, who is chief financial officer, are accused of misrepresenting the type of employees for whom they were seeking workers’ compensation coverage so they could pay cheaper premiums.
Zahler and Tai could not be reached for comment.
