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WORKES COMPENSATION CAN BE A
LIFE LINE FOR PEOPLE INJURED ON
>>> WORKERS' COMPENSATION CAN
BE A LIFELINE FOR PEOPLE
INJURED ON THE JOB.
IT CAN KEEP YOU AFLOAT
FINANCIALLY UNTIL IF AND WHEN
YOU'RE READY TO WORK AGAIN.
BUT BILLIONS OF COMPANIES OR
DOLLARS ARE BEING PAID OUT IN
BOGUS CLAIMS AND SOME COMPANIES
SAY ENOUGH IS ENOUGH HERE.
TONIGHT WE'LL TAKE YOU INSIDE
ONE COMPANY THAT IS FIGHTING
BACK AND SEEING RESULTS.
>> REPORTER: DOES IT GUY LOOK
LIKE HE SUFFERS WITH A BAD
BACK?
WATCH AS HE HELPED LOAD THIS
TRUCK WITH HEAVY FURNITURE.
HE MAKES SEVERAL TRIPS UP THE
RAMP, AT ONE POINT LUGGING A
REFRIGERATOR.
HE APPARENTLY WANTS YOU TO
THINK HIS BACK IS SO BAD, HE
CAN'T WORK AT ALL.
>> HE IS CLAIMING RECENTLY
HE CANNOT BEND, STOOP, SQUAT,
LIFT ANYTHING HEAVY.
>> AND YOU'RE SEEING ALL OF
THAT RIGHT THERE.
>> REPORTER: UNTIL A YEAR AGO,
JULIO WORKED AT GUESS JEANS IN
MAINTENANCE BUT CLAIMS A BACK
INJURY LEFT HIM WITH PAINS SO
SEVERE AND CONSTANT, HE CAN
BARELY STAND.
>> THIS FAR OUTWEIGHS ANY WORK
HE WAS DOING AT GUESS JEANS.
>> REPORTER: AND THIS MAN WHO
IS CURRENTLY UNDER
INVESTIGATION ALSO WORKS FOR
GUESS HE CLAIMS TO SUFFER WITH
A BAD RIGHT SHOULDER.
THE SAME SHOULDER YOU SEE HIM
USE TO JACK THIS UP CAR.
>> EVERY CLAIM I'VE BEEN
ASSIGNED TO THUS FAR BY GUESS I
HAVE PICTURES LIKE THIS.
>> PERHAPS THESE TWO WORKERS
HAD NO IDEA GUESS WOULD FIGHT
BACK WHEN THEY APPLIED FOR
LONG-TERM DISABILITY.
BUT WITH THOUSANDS AT STAKE,
GUESS CALLED IN A PRIVATE
INVESTIGATOR WHO EXPOSES PEOPLE
SUSPECTED OF CHEATING THE
SYSTEM.
>> WE'RE SENDING A MESSAGE, A
STRONG ONE.
>> REPORTER: KEVIN HEADS UP THE
SAFETY PROGRAM FOR GUESS JEANS.
FACT IS, THEY BELIEVE SO
STRONGLY ABOUT THEIR SAFETY
RECORD AND TOUGH POLICY ON
FRAUD, THEY OPENED THEIR NEW
L.A. MANUFACTURING PLANT TO OUR
TELEVISION CAMERAS FOR THE VERY
FIRST TIME.
GUESS EMPLOYS ABOUT 1,000
WORKERS HERE.
THEY SAY IN SIX YEARS, THEY
HAVE REDUCED THE WORKERS' COMP.
CLAIMS FROM 250 TO 33.
>> IN 1991 AND 1992, WE SPENT
ABOUT $1. THE MILLION ON
WORKER'S COMP.
WE HAVE REDUCED IT DOWN TO
200,000.
IF YOU'RE GOING TO EXAGGERATE
YOUR INJURY OR FILE A
FRAUDULENT WORKERS' COMP.
CLAIM, WE'LL GET YOU.
>> REPORTER: JULIO WAS FIRED
FROM GUESS LAST FALL AND SINCE
FILED A CLAIM.
WE ASKED HIM ABOUT HIS BAD
BACK.
>> THEY SAY YOU'RE READY, GO TO
REGULAR WORK.
WHY?
MY BACK TOO MUCH PAIN.
>> REPORTER: I CONTACTED
JULIO'S ATTORNEY WHO HAS NOT
YET SEEN THE VIDEOTAPE AND HAD
NO COMMENT.
GUESS, THOUGH, SAYS IT WILL
PROSECUTE ANYONE SUSPECTED OF
INSURANCE FRAUD.
IF YOU KNOW SOMEONE WHO YOU
SUSPECT IS CHEATING THE SYSTEM
BECAUSE, REMEMBER, AS A
TAXPAYER, Y, TOO FOOT THE
BILL, CALL THE INSURANCE FRAUD
HOTLINE TOLL-FREE:
>>> BODY SLAMMER, LUGGAGE LUGGER
FOOTBALL HERO.
WANT TKNOW WHY YOU PAY MORE
FOR INSURANCE?
YOU COULD BLAME THESE GUYS
WATCH WHAT HAPPENS WHEN "EXTRA"
GOES AFTER SUSPECTEDâ–
WORKERS'COMP CHEATS.
DAVID JACKSON WITH "EXTRA'S"
"VIDEO OF THE DAY."
>> Reporter: FIREFIGHTER
IN THE SURF.
A WRESTLER IN A BODY SLAM.
ANOTHER CAMERA CATCHES A GOLFER
NEVER REALIZING HE'S BEING
WATCHED.
WHY ARE THEY UNDER SURVEILLANCE?
IT'S BECAUSE EACH ONE CLAIMS
THEY CANNOT WORK BECAUSE
OF ON THE JOB INJURIES.
AND ALL WERE COLLECTING WORKERS'
COMPENSATION BENEFITS.
FRAUD IS A BIG PROBLEM.
EXPERTS SAY ONE IN TEN WORKERS
COMPENSATION CLAIMS IS FALSE.
MEET GARY.
HE'S COACHING A FOOTBALL TEAM,
TACKLING A PLAYER, RUNNING
FOR A PASS.
MOVING WITH EASE.
THIS TRUCK DRIVER CLAIMS
HE CAN'T WORK.
HE CAN BARELY WALK
BECAUSE OF BACK AND NECK PAIN
FROM A JOB-RELATED INJURY.
FOR ALMOST THREE MONTHS HE HAS
COLLECTED $400 A WEEK
IN PAYMENTS, TAX FREE.
>> WE CONDUCTED SURVEILLANCE DAY
AFTER DAY.
DURING A TIME WHERE HE WAS
TELLING THE DOCTORS THAT HE'S
SUFFERING FROM SEVERE NECK PAIN,
BACK PAIN.
WE FIND THIS GUY PLAYING TACKLE
FOOTBALL.
>> Reporter: THEY FOLLOWED
THE MAN.
FOR THE INSURANCE COMPANY PAYING
THE CLAIM.
HE COULDN'T BELIEVE HIS EYES
WHEN HE SECRETLY VIDEOTAPED
THE ALLEGEDLY INJURED MAN MOVING
WITH SUCH EASE.
THIS INJURY SPECIALIST WAS ALSO
SURPRISED BY THE VIDEOTAPE.
>> YOU ALMOST FEEL LIKE YOU HAVE
BEEN DUPED TO HAVE SOMEBODY WHO
ACTS ONE DAY IN THE EXAM
AND SPEAKS WELL AND ON THIS TAPE
YOU SEE SOMETHING SO DIFFERENT.
>> Reporter: HE REPORTED HE WAS
IN SEVERE PAIN.
AFTER AN EXAMINATION,
THE DOCTORS BELIEVED HIM.
THEY WERE SHOCKED AND IN A WAY
THANKFUL.
>> WE WOULD NEVER HAVE SEEN THIS
HAD SOMEBODY NOT PROVIDED THIS
TO US.
WE WOULD HAVE SEEN THIS -- THIS
COULD HAVE GONE ON LONGER.
>> Reporter: THE D.A.'S OFFICE
PUT A STOP TO THAT.
THEY DECIDED TO ARREST HIM
FOR FRAUD.
"EXTRA" HAS OBTAINED FOOTAGE AS
INVESTIGATORS SWOOP IN EARLY IN
THE MORNING.
THEY APPROACH HIS HOME.
THEY ASK HIM TO STEP OUTSIDE.
THEN THEY HANDCUFF HIM RIGHT
IN FRONT OF HIS NEIGHBORS
AND HALL HIM AWAY.
ACCORDING TO COURT DOCUMENTS
OBTAINED BY "EXTRA," HE IS
CHARD WITH TWO COUNTS
OF INSURANCE FRAUD AND IS FREE
ON $5,000 BAIL AWAITING TRIAL.
WE WANTED ANSWERS.
I WENT TO HIS HOME.
NOT SURPRISINGLY, HE WOULD NOT
GET OUT OF HIS CAR.
HE CMMED UP, WOULDN'T COMMENT
AT ALL.
ALL HE DID WAS HAND ME
HIS LAWYER'S BUSINESS CARD.
ANY CHANCE OF A QUICK WORD
OR TWO?
>> I CAN'T TALK TO YOU.
>> Reporter: YOU HAVE BEEN TOLD
NOT TO?
>> THAT'S RIGHT.
>> Reporter: HIS LAWYER ARE
NO COMMENT.
THE STAKES ARE VERY HIGH.
INSURANCE FRAUD IS A FELONY.
THE DISTRICT ATTORNEY TOLD US --
>> SOMEONE WHO CHEATS
IN WORKERS' COMPENSATION FRAUD
CAN FACE FIVE YEARS IN STATE
PRISON.
>> Reporter: IF YOU ARE THINKING
OF DEFRAUDING THE SYSTEM, BE
WARNED.
CAMERAS, COPS AND PRIVATE
INVESTIGATORS ARE WATCHING,
WAITING AND LOOKING FOR YOU.
>> HE IS BEING ARRAIGNED THIS
FRIDAY THE 1h ON TWO COUNTS
OF INSURANCEOOD GOOD AND THE
DRINKS CHEAP?
WHAT'S IN IT.
>> ALL RIGHT.
THANKS A LOT, FRED.
MOST US THINK OF FIREFIGHTERS
AS HEROES.
PEOPLE WHO RISK THEIR LIVES TO
SAVE OTHERS.
BUT THIS STORY IS ABOUT A
FIREFIGHTER SOME ACCUSED OF
TRYING TO CHEAT TAXPAYERS OUT
OF HUNDREDS OF THOUSANDS OF
DOLLARS.
IT'S A CASE OF WORKMEN'S COMP.
AND A PRIVATE EYE WHO TAILED
THAT FIREFIGHTER FOR WEEKS ALL
THE WAY TO HAWAII TO GET THE
EVIDENCE HE NEEDED.
DOES THIS GUY LOOK LIKE HE
SUFFERS WITH A BAD BACK??
WATCH AS HE PICKS UP THREE
SUITCASES!
LATER HE LIFTS HIS DAUGHTER
OVER HIS HEAD.
THEN PLAYS ROUGHLY AT THE
BEACH.
33-YEAR-OLD DANNI FARNEY A
12-YEAR VETERAN WITH THE
OCEANSIDE FIRE DEPARTMENT
APPARENTLY WANTS YOU TO BELIEVE
HIS BACK INJURY IS SO
DEBILITATING HE CAN'T EVEN WORK
A DESK JOB.
>> RUNNING IN DEEP SAND.
THIS IS NOT A MOVE YOU DO ON
PURPOSE HOLDING YOUR ARMS UP.
FUR BACK HAS BEEN HURTING.
>> REPORTER: PERHAPS FARNEY HAD
NO IDEA THE CITY WOULD FIGHT
BACK WHEN' PLIED FOR A
PERMANENT DISABILITY.
BUT WITH SO MUCH MONEY AT
STAKE, 50 PERCENT OF HIS SALARY
FOR LIFE OR ROUGHLY 6 TO 7
HUNDRED THOUSAND DOLLARS, THE
CITY TURNED TO TED KEARNER.
HIS SPECIALTY, INSURANCE FRAUD.
HE FOLLOWED FARNEY TO HAWAII,
VIDEOTAPING HIS EVERY MOVE,
GETTING CLOSE ENOUGH TO EVEN
OVERHEAR A STARTLING ADMISSION.
>> HE SAID TO A WHOLE TABLEFUL
OF PEOPLE, I GUESS WHEN WE GET
BACK HERE IT WILL BE TIME FOR
ME TO START HAVING BACK PAIN
AGAIN.
>> REPORTER: AFTER HEARING THAT
AND SEEING THESE PICTURES, THE
CITY OF OCEANSIDE FIRED DANIEL
FARNEY IN SEPTEMBER.
RIGHT NOW, HE IS APPEALING THAT
DECISION.
>> THE MAN IS A THIRD YEAR LAW
STUDENT.
HE KNOWS HE IS COMMITTING A
CRIME BY EXAGGERATING A CLAIM
OF DISABILITY AGAINST HIS
EMPLOYER.
THAT'S A FELONY IN CALIFORNIA.
>> KEARNER SAYS HE EXPOSES
PEOPLE WHO CHEAT THE SYSTEM BUT
FOR EVERYONE HE CATCHES,
THOUSANDS SLIP THROUGH THE
CRACKS.
IN THIS CASE, A FRIEND HEARD
DANIEL FARNEY BRAGGING AND
TIPPED KEARNER TO THE CASE THAT
TIPSTER TALKED TO CHANNEL 4 BUT
WANTS TO REMAIN ANONYMOUS.
>> RIGHT NOW HE IS GOING TO
SCHOOL TO BE AN ATTORNEY.
AND I THINK THAT IS HIS GOAL.
IS TO BECOME ONE.
AND, UHM... MAYBE GET IT
FINANCED THROUGH WORKMANS COMP.
>> WE CONTACTED FARNEY'S
ATTORNEY WHO HAD NO COMMENT
ABOUT THE VIDEOTAPE OR ANYTHING
ELSE REVOLVING AROUND THIS
CASE.
THE STATE IS NOW INVESTIGATING
POSSIBLE CRIMINAL CHARGES FOR
INSURANCE FRAUD.
IF YOU KNOW SOMEONE WHO YOU
BELIEVE IS CHEATING THE SYSTEM
BECAUSE, REMEMBER, AS A
TAXPAYER, YOU FOOT THE BILL...,
CALL THIS INSURANCE FRAUD
HOTLINE TOLL-FREE:ZMAN.
A FORMER OCEANSIDE FIREFIGHTER
ACCUSED OF FAKING A BACK INJURY
TO COLLECT WORKERS COMPENSATION
SAYS HE'S NOT GUILTY.
DANIEL FARNEY ENTERED THE PLEA
TODAY TO FELONY CHARGES OF
INSURANCE FRAUD AND PERJURY.
IF CONVICTED.. HE FACES UP TO
FIVE YEARS IN PRISON.
FARNEY WAS ARRESTED LAST WEEK..
AFTER HE WAS QUESTIONED ABOUT A
VIDEOTAPE TAKEN DURING A
VACATION IN HAWAII LAST MAY.
THE TAPE SHOWS FARNELIFTING
HEAVY LUGGAGE, SWIMMING AND
CARRYING HIS DAUGHTER.
HE HAD TOLD THE DEPARTMENT HE
INJURED HIS BACK ON THE JOB..AND
HE COULDN'T DO EVEN LIGHT DUTY.
THE PRIVATE INVESTIGATOR WHO
SHOT THE TAPE.. SAYS PEOPLE LIKE
FARNEY COSTAXPAYERS BILLIONS
OF DOLLARS EACH YEAR.
THE CITY OF OCEANSIDE FIRED
FARNEY IN SEPTEMBER.. AFTER
SEEING THE VIDEOTAPE.
TODAY.. FARNEY'S LAWYER SAYS
MAKE A FULL RECOVERY.
>>> THIS NEXT STORY IS LIKELY
TO MAKE EVERY HARD-WORKING,
HONEST EMPLOYEE MAD.
IT'S ABOUT PEOPLE CAUGHT
ON TAPE, TRYING TO BEAT
THE SYSTEM, AND CHEAT
THEIR BOSSES OUT OF GOOD MONEY.
WHY SHOULD YOU CARE?
BECAUSE, AS PHIL SHUMAN
DISCOVERED, YOU WIND UP PAYING
THEIR BILLS.
>> HE SURE LOOKS LIKE HE'S
VING A GOOD TIME.
>> Reporter: EDWARD MENDEZ
AT THE CARNIVAL.
RIDING THE HURRICANE,
THE OCTOPUS.
HARD TO BELIEVE HE'S IN SUCH
SEVERE PAIN THAT HE CAN
NO LONGER WORK, BUT THAT'S WHAT
INVESTIGATORS SAY.
HE'S CLAIMED THAT HE HURT
HIS BACK ON THE JOB AND DESERVES
A MONTHLY TAX-FREE INSURANCE
CHECK CALLED WORKERS
COMPENSATION.
THIS MAN'S ALSO FILED A WORKERS
COMP CLAIM --
TRUCK DRIVER ANDREW ENRIQUEZ.
LOOK AT HIM HOBBLE PAINFULLY
INTO THE DOCTOR'S OFFICE
ON CRUTCHES.
HE HAS A LOT OF TROUBLE.
IN FACT, HE SAYS AS A RESULT
OF FALLING OFF A LOADING DOCK,
HE'S HAD 11 DIFFERENT INJURIES
THAT PREVENT HIM FROM DOING
HIS JOB AS A TRUCK DRIVER.
BUT TAKE A LOOK AT THIS.
MINUTES AFTER LEAVING
THE DOCTOR'S OFFICE,
THE CRUTCHES ARE GONE, ENRIQUEZ
SEEMS JUST FINE!
>> I'M SURPRISED HOW MANY PEOPLE
THINK WE'RE NOT GOING TO BE
WATCHING.
>> Reporter: IT WAS PRIVATE
INVESTIGATOR TED KOERNER, HIRED
AFTER ENRIQUEZ AND MENDEZ'S BOSS
BECAME SUSPICIOUS
OF THEIR SUPPOSED INJURIES, WHO
CAUGHT THEM ON TAPE.
USING AN ORDINARY HOME VIDEO
CAMERA LIKE THIS ONE,
AND SITTING IN HIS CAR OUTSIDE
THE TARGETS' HOMES, FOLLOWING
THEM AROUND TOWN, SOMETIMES
FOR DAYS HE WAITS FOR THEM
TO MAKE A MISTAKE.
IN THE CASE OF ENRIQUEZ, TAKE
A LOOK AT THIS.
DOES HE LOOK ENABLED?
>> WE OBSERVED HIM THREE
STRAIGHT DAYS MOVING HIS ENTIRE
HOUSE, TREMILL, RV, FURNITURE,
CLOTHES, COUCHES.
BUTCHER BLOCK TABLES, THE
COUCHES, UP AND DAWN OFF THE
ROOF OF HIS VAN TIME AND TIME
AGAIN AND SHE WAS SUPPOSEDLY SO
DISABLED HE COULD NOT SIT AND
DRIVE A TRUCK.
>> Reporter: "EXTRA'S" ALREADY
REPORTED ON HOW TED HELPED
EXPOSE FIREFIGHTER
DANIEL FARNEY, SUPPOSEDLY
DISABLED, FROLICKING
ON THE BEACH IN HAWAII.
OR THIS WOMAN, TOO HURT TO WORK,
SHE SAID, JUMPING AROUND
AS A PART-TIME CLOWN.
OR THIS CONSTRUCTION WORKER
WITH BAD WRISTS, FLYING AROUND
THE WRESTLING RING.
WHY SHOULD THE PUBLIC CARE?
>> IT'S COSTING THEM ON EVERY
SINGLE THING THEY DO ALL DAY
LONG.
THE PRICE OF YOUR HOUSE,
YOUR CAR, YOUR CLOTHES,
YOUR FOOD, YOUR ENTERTAINMENT,
YOUR TRAVEL AND LEISURE.
EVERYTHING YOU DO ALL DAY LONG
HAS THE COST OF INSURANCE BUILT
INTO IT, AND THE IURANCE COSTS
ARE TOO HIGH.
>> Reporter: GENE SHELTON AGREES
WITH THAT.
BOTH MENDEZ AND ENREEK KEZ
WORKED FOR HIM.
>> THEY HAVE BEEN STEALING FROM
DAY ONE IN DIFFERENT FORMS.
FRAUD LENT CLAIMS IS ONE OF
THOSE FORMS.
>> Reporter: HERE'S A MORE
SOMBER PICTURE, MENDEZ BEING
ARRESTED.
WHEN CONFRONTED WITH THIS TAPE,
HE DROPPED HIS DISABILITY CLAIM
AND PLED GUILTY.
AS FORREN DREW ENREEK KEZ, HE
WAS RELEASED.
HIS DISABILITY PAYMENTS WERE
STOPPED.
HEESZ APPEALING THAT DECISION.
THE CASE IS STILL TIED UP IN THE
COURT SYSTEM WHEN WE TALKED TO
HIM ABOUT IT, WE DIDN'T GET A
WARM WELCOME.
>> GET OUT OF HERE, GET OUT
OF HERE, I'LL GET OUT OF THIS
TRUCK AND KICK THE [ BLEEP ] OUT
OF YOU!
CAN YOU COME OVER AND TALK?
>> GO AWAY!
>> Reporter: WE BACKED OFF.
HE WENT INSIDE, LOCKED THE DOOR
AND THAT WAS THE LAST WE SAW
OF HIM.
ANDREW, WE WANT TO HEAR
YOUR SIDE OF THE STORY.
ANDREW?
>> I CAN'T BELIEVE THAT.
DID HE EVER COME OUT AND GIVE
YOU HIS SE OF THE STORY?
>> NO, HE NEVER DID, AND DESPITE
WHAT OUR