Nicole Brown, a 39-year-old former Westminster, California, police officer, collected nearly $600,000 in workers’ compensation after she claimed a significant head injury in 2022. Now her reputation and future are on the line.
As ABC 7 Los Angeles reports, Brown is charged with 15 felonies of workers’ compensation and insurance fraud. If convicted, she could spend up to 22 years in prison. Her stepfather, Peter Gregory Schuman, a licensed attorney practicing workers compensation defense for insurance companies, is also charged in connection with the case.
Don’t miss
- I’m 49 years old and have nothing saved for retirement — what should I do? Don’t panic. Here are 5 of the easiest ways you can catch up (and fast)
- Gain potential quarterly income through this $1B private real estate fund — even if you’re not a millionaire. Here’s how to get started with as little as $10
- Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
Prosecutors with the Orange County District Attorney’s Office allege that Brown was spotted dancing and drinking at a music festival, skiing, and even taking part in a 5K marathon since the time of her initial claim.
As the allegations involve $600,000 in taxpayer-funded compensation payments, there are a lot of eyes on the case.
"For a police officer to engage in that kind of behavior is absolutely disgusting," Kimberly Edds, Public Information Officer at the Orange County District Attorney’s Office, told ABC 7.
Brown’s lawyer Brian Gurwitz maintains that his client did indeed suffer a significant head injury while on duty “and she intends to vigorously fight these allegations.”
District Attorney’s Office investigates
Edds confirmed that Brown was injured while trying to make an arrest on March 21, 2022 — but described the injury as a "minor abrasion" to Brown’s forehead, not a serious injury.
"She went to the emergency room that day,” Edds said. “The doctor cleared her without any restrictions on duty.”
Edds then said that after calling in sick several days, Brown told her department she’d been diagnosed with a traumatic brain injury by a doctor who put her on temporary disability.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
Meanwhile, Edds said, Brown was “engaged in an incredibly active lifestyle where she was running, skiing, going to Disneyland.”
The District Attorney’s Office launched an investigation after receiving reports that Brown was seen drinking and dancing at the Stagecoach Music Festival.
"People who knew she was on full disability witnessed her behaving in a way that was not consistent with what she was telling her department," said Edds.
Why insurance fraud hurts everyone
The questions around Brown’s case, and allegations as yet unproven in court, raise questions about the larger impact of insurance fraud.
A 2025 report by the investment management firm Conning found that workers’ compensation fraud costs insurance companies $35 to $55 billion every year.
And unfortunately, it’s not just workers who can defraud insurers by faking or exaggerating injuries.
As ADP reports, employers can defraud insurance companies, too — trying to lower their premiums by misclassifying employees as independent contractors, lying about workplace safety programs and submitting falsified payroll records to their insurance companies.
Unfortunately, if insurers are losing money paying out fraudulent claims, they have to raise premiums for everyone.
Small businesses, for example, could see their insurance premiums rise as a result of workers’ compensation fraud. And that’s a problem, since smaller operations may not have the wiggle room to absorb those premium hikes like larger employers.
Large employers, meanwhile, might seek to cut other workplace benefits if workers compensation insurance starts costing more.
Meanwhile, If insurers are bogged down processing claims that are fraudulent, it takes resources away from workers who need their legitimate claims processed quickly.
The Babcock Law Firm in Denver notes that attorneys themselves can engage in workers’ compensation fraud, as Brown’s stepfather is alleged to have done.
Lawyers can also conspire with medical professionals to bill extra or exaggerate worker injuries.
That’s why it’s important to report workers’ compensation fraud if you discover it. Unfortunately, there’s no centralized location to report workers comp fraud, as each state has its own department.
In New York, for example, workers compensation fraud can be reported to the Office of the Workers’ Compensation Fraud Inspector General.
It’s worth looking up that information online and reporting fraud so that criminals can be stopped in their tracks.
What to read next
- JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it’s too late)
- This is how American car dealers use the ‘4-square method’ to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs
- Here are 5 ‘must have’ items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you?
Like what you read? Join 200,000+ readers and get the best of Moneywise straight to your inbox every week. Subscribe for free.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Related Posts
