Judge sentences Diamond Bar man for insurance fraud

LOS ANGELES — A Diamond Bar man must repay $1.38 million and spend five years on probation for failing to pay workers’ compensation insurance for employees at his nurse staffing agency.
Joseph Baiden, 57, will also have to pay the California Department of Insurance $110,000 to cover the cost of the investigation, Los Angeles County District Attorney’s Office spokeswoman Sandi Gibbons said in a written statement.
Prosecutors say Baiden underreported the number of employees who worked for his company, Los Angeles-based Nurse Connections, Inc., leading to reduced workers’ compensation payments.
He pleaded guilty to insurance fraud after the scheme was uncovered.
Judge David Horowitz sentenced Baiden on Friday. The judge ordered Baiden to be electronically monitored for the first three months of his probation. He also suspended a five-year prison sentence.
The fraud occurred between 2001 and 2007.
The investigation into Baiden began in September, 2008 after authorities received a tip.
Insurance Commissioner Steve Poizner said Baiden appeared to be living a “lavish lifestyle” with proceeds from the fraud.
Government officials seized three homes that belonged to him in Diamond Bar. They are in the 2700 block of Wagon Train Lane, the 2200 block of Rusty Pump Road and the 800 block of Sunset Place.
Officials also seized a vacant residential lot on Derringer Lane in Diamond Bar and a home on Pala Mesa Drive in Pomona.
The total value of the properties is estimated at $4 million.

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