The inside of a police station showing signs of an ongoing fraud investigation.
Nicole Brown, a former police officer, and her stepfather, Peter Schuman, face felony charges for allegedly running a workers’ compensation fraud scheme, costing the city over $600,000. Brown is accused of exaggerating her injuries to receive benefits while participating in various activities, undermining her claims. Schuman faces charges of collusion with Brown in her fraudulent activities. If convicted, they could face significant prison time and forfeiture of benefits, raising concerns about trust in the workers’ compensation system.
Westminster, CA – Nicole Brown, a 39-year-old former police officer, and her stepfather, 57-year-old Peter Gregory Schuman, face multiple felony charges for allegedly orchestrating a workers’ compensation fraud scheme that has cost the city more than $600,000. Brown is accused of exaggerating her disabilities following an injury sustained in the line of duty, while Schuman, an attorney specializing in workers’ compensation defense, is charged with colluding in her fraudulent claims.
Authorities allege that Brown claimed she was completely disabled due to a head injury incurred on March 21, 2022, while handcuffing a suspect. Initially, an emergency room doctor released her to work without restrictions the same day. Despite this, Brown received a diagnosis of severe concussion syndrome on March 30, 2022, leading to her being placed on Total Temporary Disability (TTD).
Brown is charged with 15 felony counts, which include nine counts of making fraudulent statements to obtain compensation and six counts of making fraudulent insurance benefit claims. Additionally, she faces a felony enhancement for allegedly committing an aggravated white-collar crime exceeding $100,000. Schuman is facing two felony counts: one for making a fraudulent insurance benefit claim and another for assisting and conspiring with Brown in the unlawful act.
The fraudulent claims resulted in Brown receiving her full, tax-free salary and related medical expenses, costing the city over $600,000. Under current policies, when police officers unable to work due to on-duty injuries are placed on temporary disability, they can collect their full salaries for the first year. Beyond that, they are eligible for two-thirds of their average weekly wage for up to 104 weeks over five years through standard workers’ compensation benefits.
During her time on TTD, Brown reported suffering from a range of symptoms including persistent headaches, dizziness, light sensitivity, and cognitive difficulties. However, investigators uncovered a substantial discrepancy between her reported condition and her activities. For instance, Brown was seen attending the Stagecoach Music Festival on April 29, 2023, where she reportedly danced and drank. Shortly after this event, she participated in a Zoom meeting discussing her potential duties as a police officer, during which she claimed to be unable to view the screen and remained in a dark room. Schuman intervened, speaking on her behalf to reiterate her limitations.
Furthermore, investigations revealed that soon after her purported injury, Brown actively participated in an AYSO soccer conference in San Diego. Her activities during the disability period included running in two separate 5K races, engaging in skiing and snowboarding in Big Bear and Mammoth, and visiting Disneyland.
If convicted of all charges, Brown could face up to 22 years in state prison along with possible forfeiture of pension benefits accrued since the alleged criminal activities began. Schuman, on the other hand, faces a maximum sentence of eight years in prison and potential disciplinary measures from the State Bar of California for his role in the alleged fraud.
This case highlights not only the severity of the fraud but also the implications for public trust in the workers’ compensation system, designed to protect those injured in the line of duty. As the legal proceedings move forward, both individuals await their fate regarding the serious allegations against them.
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