Kathy Lowe is a Senior SIU Investigator who started with Delta Group in December 2022. Following a twenty-five year career as an auditor and SIU investigator with the California State Compensation Fund, Kathy decided to make a change and join Delta Group.
Being a detailed and thorough investigator, Kathy is able to evaluate and analyze financial, business and insurance records, drawing sound conclusions. One of our committed team members, Kathy, has worked on numerous cases that highlight the many ways premium fraud can occur, and the impact these investigations have in protecting businesses and workers, including:
Misclassification of Payroll
In one case, the company claimed to be a painting contractor, reporting all payroll under the painting classification to receive lower premiums. A news story about a roofing truck accident, however, revealed the truth: the company involved was the same as the painting contractor. Roofing payroll carries a higher premium rate than painting. This misclassification had gone on for years and was eventually convicted of premium fraud and ordered to pay restitution.
Underreporting Payroll
Another case involved a pool company that claimed to have no payroll for years. When an employee was injured, investigators discovered falsified records hiding hundreds of thousands of dollars in payroll annually. This long-running scheme ended with a conviction and restitution.
Misuse of Independent Contractors
A courier service was reporting all drivers as independent contractors, until an injury claim surfaced where they would report the claim as an employee. The company was charged and convicted of premium fraud and required to pay premiums for all drivers.
Dual Wage Misclassification
California’s dual wage classifications for construction trades create opportunities for fraud. Kathy has worked many cases where companies falsified timecards to qualify for lower-rated classifications and pay lower premiums. Timecards would reflect inflated hourly wages and reduced hours worked. Many cases Kathy worked, involved construction and roofing companies, were prosecuted by the DA.
Cash Pay Schemes
One major investigation involved several construction companies funneling payroll through a “subcontractor” who was found to be cashing the checks, keeping a percentage, and paid all the construction companies’ workers in cash. This scheme involved millions of dollars and led to multiple prosecutions.
A Commitment to Truth and Justice
Kathy's work exemplifies Delta Group's mission of uncovering truth in insurance claims while protecting businesses and workers from fraud. Her meticulous attention to detail, ability to analyze complex financial records, and dedication to thorough investigations have resulted in significant recoveries for our customers and successful prosecutions of fraudsters.
From payroll misclassifications to construction fraud schemes, Kathy's investigations demonstrate the critical role that experienced SIU investigators play in maintaining the integrity of the workers' compensation system. Her success stories remind us that premium fraud doesn't just impact insurance carriers—it ultimately affects honest businesses and the premiums they pay.
At Delta Group, we're proud to have investigators like Kathy on our team, combining 40+ years of company experience with cutting-edge tools like our proprietary eRemote® surveillance technology. Whether it's uncovering a multi-year fraud scheme or identifying misclassified contractors, our team is dedicated to protecting our customers and ensuring that claims are legitimate.
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