Another Exec Out at Comp Insurer

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A third top executive at California’s government-controlled workers’ compensation insurance company has been dismissed amid a continuing probe into allegations of conflicts of interest and fraud involving as much as $1 billion, the Los Angeles Times reports.


Charles Savage, a vice president and general counsel to the board of directors, was relieved of his duties at the State Compensation Insurance Fund late Tuesday.


The company, known commonly as State Fund, insures 230,000 California employers against claims from workers who are injured on the job.


The extent of possible fraud and misappropriation of money at the quasi-public fund is still under investigation. But people familiar with the inquiry said investigators were looking at reported payments , approved by State Fund’s key executives , made to firms connected with two former board members who resigned last year.


The amount involved in the alleged fraud is expected to be at least $600 million and could run as high as $1 billion, said Jennifer Kerns, a spokeswoman for California Insurance Commissioner Steve Poizner.


Read the full L.A. Times story

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