Westminster Lawsuit Against Former Officer for Fraud

News Summary

The city of Westminster has initiated a civil lawsuit against former officer Nicole Brown, accused of defrauding the workers’ compensation system for over $600,000. Despite claiming severe disability from a head injury, Brown was seen engaging in various physical activities during her leave. Alongside her stepfather, also implicated in the fraud, Brown maintains her innocence and plans to contest the lawsuit. The case highlights the issues of fraud within workers’ compensation claims and the significance of accountability in the system.

Westminster – The city of Westminster has filed a civil lawsuit against former police officer Nicole Brown, who is accused of committing workers’ compensation fraud totaling over $600,000. The city aims to recover funds it claims were unlawfully obtained and cover the costs of investigation and prosecution associated with the alleged fraud.

Brown, who was charged in May with 15 felony counts including making fraudulent statements to obtain compensation, purported to be completely disabled due to a head injury suffered while apprehending a suspect on March 21, 2022. Despite being cleared by a doctor to return to work without restrictions, she later received a diagnosis for severe concussion syndrome, leading to her being placed on Total Temporary Disability (TTD).

However, while on disability leave, Brown was reportedly seen participating in various physical activities that contradicted her claims of inability to work. Witness accounts documented her attending the Stagecoach music festival, skiing, running two 5K races, visiting Disneyland, and playing golf. These activities raised red flags, prompting investigators to look into her claims after reports surfaced of her attending the festival.

The city council unanimously voted to pursue the lawsuit against Brown on July 8. The city contends that the fraudulent claims made by Brown have cost them approximately $600,000, which included her salary, received tax-free, as well as associated medical expenses. Such financial implications have led city officials to emphasize the need to recover the funds, asserting that fraud will not be tolerated.

In addition to Brown’s charges, her stepfather, Peter Gregory Schuman, a licensed attorney specializing in workers’ compensation defense, has also been implicated. He faces charges for making a fraudulent insurance benefit claim and conspiring with Brown in these unlawful acts. If convicted, Brown faces a maximum sentence of up to 22 years in prison, while Schuman could receive a maximum of eight years.

The lawsuit represents a growing concern surrounding the integrity of workers’ compensation claims and the potential for abuse within the system. Brown’s case has drawn attention to the monitoring processes in place to detect fraudulent activities. The city asserts that it is essential to uphold the principles of justice for both residents and honest employees.

Brown has maintained her innocence regarding the allegations and plans to vigorously challenge the lawsuit filed against her. The events surrounding her case have sparked discussions on necessary reforms to prevent fraud in workers’ compensation claims and ensure that resources are not misallocated.

As this unfolding situation continues to develop, Westminster officials remain committed to redistributing the burden off taxpayers and holding accountable those who exploit the system. The outcome of the lawsuit against Brown could set precedence and influence future cases within the state’s workers’ compensation framework.

The ongoing investigation and legal proceedings underscore the complexities of workers’ compensation and the importance of proper conduct by law enforcement officials. The city of Westminster stands firm in its efforts to recover the misappropriated funds and uphold accountability for those involved in fraudulent activities.

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Additional Resources

• ABC7 News
• CBS News
• New York Post
• Google Search: Workers Compensation Fraud
• NBC Los Angeles
• Wikipedia: Workers’ Compensation