First, my family and I wish to congratulate you on your election to Attorney General. We feel confident you will accomplish a great deal for the citizens of this great State.

This letter is in response to your very encouraging e-mail I received from you during your campaign. I realized that you needed more specific information in regards to the criminal acts committed by State Compensation Insurance Fund. I have enclosed evidence that State Fund has engaged in malicious and despicable conduct. If the evidence strongly suggests that State Fund is culpable in this case, I ask that you use your discretion to settle with me.

As having a history of being concerned for the injured worker, by offering SB 1539 as an example, I believe you will find the enclosed documents quite disturbing.

In August 1997, State Fund, in an effort to avoid paying a 100% disability settlement on a claim for which they had previously accepted liability, willfully, voluntary and on their own initiative violated my rights by committing fraud, perjury and obstruction of justice, by knowingly submitting a fraudulent Statement of Facts to the Workers Compensation Appeals Board, to cover up State Fund’s previous unethical and illegal termination of my permanent disability benefits.

On page two of State Fund’s Answer to my petition for reconsideration, Statement of Facts, they stated my permanent disability benefits were terminated based on an Agreed Medical Examination done by a Dr. Edward O’Neill. This is an absolute lie, as I was not examined by Dr. O’Neill until 8/10/1993, and my benefits had already been terminated two years prior (7/15/1991), and yet State Fund is claiming that my benefits were terminated based on an Agreed Medical Examination, at the time of termination(7/15/1991) the Agreed Medical Examination would not had been conducted until two years later.

In 1997, just weeks before State Fund prepared their Statement of Facts, State Fund and their attorney, Gustavo San Jose, relied heavily on the Agreed Medical Examiner’s (Dr. O’Neill) report at trial, this report was clearly dated 12/20/1993, showing State Fund had full and prior knowledge of the true facts.

As further evidence that I did not see Dr. O’Neill, the Agreed Medical Examiner, until 8/10/1993, I have enclosed State Fund’s own letter(6/23/1993) advising me of the date and time of my appointment with Dr. O’Neill, as you can see, it is not 1991. State Fund’s own document proves beyond a reasonable doubt they had full and prior knowledge of the true facts of the case and that State Fund lied to the Workers Compensation Appeals Board to cover up previous misdeeds.

State Fund did not receive the Agreed Medical Examiner’s report in their mail room until 12/27/1993 and their attorney, Mr. San Jose, did not receive the Agreed Medical Examiner report until 12/30/1993, four months after I was examined.

As further evidence that State Fund and their attorney had full and prior knowledge that my permanent disability advances were not terminated based on the Agreed Medical Examiner’s report. I have enclosed a letter from State Fund dated 6/25/1991. This letter clearly states that State Fund would be terminating my permanent disability advances based on their permanent and stationary report by a Dr. Greenberger, dated 7/16/1990. But, if you read the enclosed letter from the treating lung specialist, Dr. Ratto (6/20/91), you will see that State Fund acted in an unethical and illegal manner in terminating my benefits, by not following proper procedure and using intimidation trying to force me into an unfair settlement and relieve themselves of any long term liability due to the severity of my condition, as diagnosed by Dr. Ratto.

Had they followed procedure, State Fund would not have had to lie to the Workers Compensation Appeals Board to cover-up their fraudulent action. State Fund violated the trust of the Workers Compensation Appeals Board and the State of California, by intentionally falsifying information in the Statement of Facts.

Also, State Fund engaged in another deliberate act of deception to take an unfair advantage when, they refused to list in their Statement of Facts, the job site investigation they had conducted, or any of it’s findings. See State Fund report dated 3/24/1989.

Furthermore, State Fund also engaged in a deliberate act of deception, by implying that I began receiving Temporary Disability Benefits after I filed for an application for adjudication. The fact is State Fund started to make payments the first part of February 1989 based on the employers report, and reports from Dr. Ratto, whose findings and involvement are nowhere to be found in State Fund’s statement of facts.

State Fund’s own documents provide substantial and credible evidence, that proves beyond a reasonable doubt, State Fund willfully and voluntarily, and of their own initiative, engaged in the most serious criminal act of fraud, perjury and obstruction of justice, to avoid paying a settlement for an injury claim they investigated and for which they had accepted liability.

Because of State Fund’s unethical and unlawful handling of my case, my family and I were forced into poverty and eventual bankruptcy. We lost everything we had worked so hard for. State Fund’s actions would have made myself, my wife and our three children homeless had it not been for the Social Security Administration finding substantial evidence that I did indeed contract occupational lung disease and had become permanently disabled as a result of 21 years of cumulative exposure to plastic smoke as a plastics fabricator, and awarded me permanent disability benefits.

What State Fund has done is not a simple mistake of switching doctors names, nor a misstep and miscalculation, as they were quoted in the enclosed LA Times article, dated 5/19/1994, when they were ordered to pay John McGregor $1.5 Million, please note highlighted areas in this article.

State Fund’s action, in this case, has shown they are willing to tamper with the justice system, I believe, under the assumption they will not be held accountable for their actions, as a result of generating nearly $1 billion annually in premiums.

State Fund was to conduct the peoples’ business only in an honorable manner and to operate within the law. What State Fund has done is not a ‘private legal matter’. State Fund has engaged in unfair claims handling practices. State Fund has abused the Workers Compensation Appeals Board, State Fund has abused my rights, State Fund has abused the law and benefited from some very serious criminal acts, including involving the US Postal System, which I believe is a very serious crime on it’s own. All this from a State agency that holds itself out to the public as a model for the industry and other states.

State Fund has acted in a most malicious and despicable manner and I have been terribly wronged. When my Permanent Disability Advances were terminated, I was left with thousands of dollars in unpaid medical bills, which State Fund had previously been paying, and have had to endure ongoing pain and suffering from a lack of proper medical care which has severely impacted not only me but my family as well. I have met with bureaucratic disinterest and stonewalling at every turn as I try to get assistance, This has only caused further aggravation, negatively impacting my health even further. Please understand that I am prepared to pursue every avenue available to see this wrong corrected. Becoming a long term victim of State Fund’s manipulations has made me all the more determined to see justice served. They must not be allowed to inflict harm based on false pretenses then, for their own convenience, sweep it all under the nearest rug. I trust you will be able to facilitate an honorable settlement. Doing so would save everyone from further prolonged, and no doubt, painfully public, litigation and examination by governing bodies.

There is no stronger evidence that State Fund is culpable than their own documents, which I have provided to you.

Mr. Lockyer, if you are left with any doubt as to weather State Fund is culpable, ask yourself the following questions:

Why did State Fund pay Disability Advances to me for 2 1/2 years, February 1989 through 7/15/1991, if they thought there was no industrial injury?

Why did State Fund terminate my benefits five days after receiving Dr. Ratto’s report dated 6/20/1991, in which he gave a me poor diagnosis? Yet they continued to pay benefits a year after they received their doctor’s report, the report which they say was the basis for termination.

Why was I told by my last attorney, when he refused to fight for my rights, the following, because State Fund generates such an enormous amount of money they can get away with anything, and beside if I push your case State Fund will stall my other cases and I can’t make any money?

Why, on June 26 1997, was I offered $49,999.00 dollars to settle my case, if they thought there was no industrial injury?

The state of California, under the guise of a no-fault policy, has exchanged the right of an injured worker to sue the employer in court, in return the employee receives compensation without having to prove that the employer caused the injuries, and yet a Workers Compensation Referee said my injury was not industrial!(see Statement of Facts, #17) This saved State Fund from paying a 100% award.

I believe, that by not facilitating a settlement in an amount that would make it uncomfortable for State Fund to engage in this type of malicious and despicable conduct, the state would be taking away the injured workers right to be free of exposure to these types of abuses from State Fund in the future.

Power unchecked is power abused. State Fund's actions have sullied the integrity of California's justice system, and violated the trust of the public. The citizens deserve better than this from their government agencies.

Thank you for your most positive response to this most serious matter. I can be reached at (email address).

Sincerely,

Larry Nign