She spent 17 years prosecuting the most complex insurance fraud cases in California — and she saved the most explosive admission for last. In this episode of Fraudcraft, recently retired Kern County Deputy District Attorney Kate Zimmermann drops a bombshell: California's workers' compensation system doesn't just have a fraud problem. According to Kate, large fraud syndicates are running the system itself.
From her very first case — a veritable buffet of corporate practice of medicine violations, applicant fraud, tax fraud, and illegal clinic ownership — to uncovering money funneled overseas to entities flagged by Interpol for potential terrorism ties, Kate's career reads like a crime thriller. Except it's all real. And it's happening to California workers right now. Kate also reveals one of the most chilling fraud tactics she prosecuted: patient files color-coded with red, yellow, and green stickers — not to track treatment, but to track how easy each insurance carrier was to rob. Clinics hired employees whose only job was to call carriers and find out reimbursement rates. The drugs you left the office with had nothing to do with your injury. They were chosen based on what your insurance company would pay.
This is the episode the insurance industry, legislators, injured workers, and prosecutors need to watch. If you've ever wondered why fraud in the workers' comp system never seems to get better — Kate explains exactly why, and what it's going to take to change it.
🎙️ Fraudcraft | The podcast exposing the billion-dollar underground economy of commercial insurance fraud.
Disclaimer: The views of the guests are their own & may not necessarily reflect the views of Fraudcraft the podcast. However in order to incite change & understand problems, we need to present all of the sides of the system connected to fraud.
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