Allegations: Former Human Resources Manager in San Francisco Stole More than $600,000.00 from Workers’ Compensation Fund

On March 21, 2024, CBS News reported that a former human resources (HR) manager in San Francisco misappropriated more than $600,000.00 in workers’ compensation funds. Stanley Ellicott has been arrested and is now facing dozens of serious criminal charges. Within this article, our Fresno workers’ compensation defense attorney provides a more comprehensive discussion of the allegations raised against the Bay Area HR manager.

The Allegations: Human Resources Manager Misappropriated Workers’ Compensation Funds

Stanley Ellicott—a former high-ranking manager in the San Francisco Department of Human Resources—has been arrested for allegedly defrauding the city out of approximately $627,000.00.  The funds were allegedly misappropriated from the city’s workers’ compensation fund. The misconduct in question purportedly occurred between the Spring 2019 and early 2024. Mr. Ellicott had served as the assistant director of finance and technology for the San Francisco Workers’ Compensation Division. He is accused of orchestrating a complex workers’ compensation fraud scheme through which funds were improperly paid for fake auditing services. A personal friend of Mr. Ellicott allegedly operated the fake auditing company, and Mr. Ellicott received a significant share of the money that was illicitly taken. 

Serious Criminal Charges Have Been Filed Against Defendant

The defendant in this case is facing very serious criminal charges. In total, Mr. Ellicott is facing 62 criminal fraud counts, including charges of grand theft, misappropriation of public funds, money laundering, and workers’ compensation fraud. The case is being handled by the District Attorney of San Francisco. As with any person accused of workers’ compensation fraud, the defendant is presumed innocent until proven guilty in a court of law.

Workers’ Compensation Fraud Undermines the System

Employers and insurance companies are both dealing with rising workers’ compensation costs. Unfortunately, workers’ compensation fraud—which remains a major issue and a significant challenge in our state—is contributing to these rising costs. Fraud undermines the integrity of the workers’ compensation system. It can take a wide range of different forms, including:

  • Insiders misappropriating workers’ compensation funds;
  • Employers intentionally underreporting payroll;
  • Employers misclassifying workers as independent contractors;
  • Medical providers billing for unnecessary services;
  • Workers misrepresenting the severity of injuries; and
  • Workers claiming injuries that did not really occur.

Workers’ compensation fraud not only strains the financial resources of the system, it also erodes trust among stakeholders—thereby contributing to higher insurance costs for honest businesses. Efforts to combat workers’ compensation fraud in California continue. In recent years, state lawmakers have dedicated specific funding aimed at fighting workers’ compensation fraud

Speak to Our Fresno Work Injury Defense Attorney Today

At Yrulegui & Roberts, our Fresno workers’ compensation defense lawyer handles the full range of issues, including cases involving allegations of workers’ compensation fraud. If you have any questions about your legal rights, please do not hesitate to contact us online for a completely confidential initial case review. With an office in Fresno and other offices in the region, we are ready to get started today.