Mr. Danowitz and Mr. DiCorrado represented the People of the State of California ex rel. Zurich American Insurance Company in a qui tam action filed in Los Angeles Superior Court against Emphacare Home Care Agency, LLC, Borlie Wong, and others for violations of the Insurance Fraud Prevention Act (Ins. Code Section 1871.7), seeking reimbursement of monies paid for submitting fraudulent claims for workers compensation benefits, and penalties.
Wong was injured in an accident, and filed a workers compensation claim with Zurich. After he received an order from the Workers Compensation Court allowing him to receive care by a Certified Nurse Assistant and Licensed Vocational Nurse, he formed Emphacare and represented to Zurich that it would be providing home health care services to him. Wong concealed his ownership and involvement with Emphacare. Wong fraudulently submitted invoices for services at 24 hours a day 7 days a week, which he did not receive, and which Zurich paid without knowledge that the invoices were fraudulent. Following a bench trial, the court found that Wong was personally responsible for submitting fraudulent bills for services claimed by Emphacare, a company he owned and controlled, and that Emphacare was his alter ego. The court awarded $10,000 as a penalty, and assessment of $2,555,190, calculated as three times the total amount of $851,730 in 75 invoices submitted for Wong’s care, jointly and severally against Wong and Emphacare, plus $684,053.97 in attorney’s fees and costs .