Nolan Enterprises helps employers defend and protect their businesses from fraud.  The most common forms are Workers Compensation fraud and Theft of Trade Secrets/Economic Espionage.

Workers Compensation Fraud

Workers Comp fraud costs California employers $1 to $3 billion per year.  In addition, fraudulent claims result in higher premiums for all California employers.  The surveillance team at Nolan Enterprises is experienced with Sub Rosa investigations.

Workers Compensation fraud occurs when an employee misrepresents the severity of a workplace injury to gain a financial benefit.  Examples include lying about an injury or an illness, exaggerating the extent of an injury, or working another job while accepting workers compensation benefits.  Based on estimates by the National Insurance Crime Bureau (NICB), workers’ compensation fraud costs U.S. employers $30 billion annually.

Economic Espionage/Theft of Trade Secrets

Surveillance can also be used to detect theft of trade secrets and acts that constitute economic espionage.

Under the Economic Espionage Act of 1996, businesses have a mechanism for protecting their intellectual property by prosecuting dishonest competitors who steal trade secrets.

Trade secret theft occurs when a person uses confidential information without authorization of their employer, often to sell to a competitor.  
Contact us to learn more about our Certified Fraud Examiners and fraud detection services for businesses.

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What is a “Sub Rosa” investigation?

Sub Rosa is Latin for “Under the Rose.”  The rose is an ancient symbol of secrecy.  In the context of Worker’s Compensation Fraud, a Sub Rosa investigation refers to legally permissible covert surveillance of a Claimant suspected of filing a fraudulent claim.

Is my employer allowed to conduct surveillance on me?

It is not illegal for an employer to hire a licensed Private Investigator to investigate potentially fraudulent Worker’s Compensation claims.  As long as the investigator does not audio record the Claimant,  does not use telescopic lenses, and does not obtain footage in places where there is an expectation of privacy, such as restrooms or locker rooms.  As long as the investigation is conducted in a lawful manner that does not violate privacy, it is legal.

Resources

State of California Department of Industrial Relations, Workers Compensation Appeals Board

California Department of Insurance – Fraud Division

Laws that protect businesses against economic espionage and theft of trade secrets

18 U.S. Code §1831. Economic espionage

(a) In General.—Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly—

(1) steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains a trade secret;

(2) without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys a trade secret;

(3) receives, buys, or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained, or converted without authorization;

(4) attempts to commit any offense described in any of paragraphs (1) through (3); or

(5) conspires with one or more other persons to commit any offense described in any of paragraphs (1) through (3), and one or more of such persons do any act to effect the object of the conspiracy, shall, except as provided in subsection (b), be fined not more than $500,000 or imprisoned not more than 15 years, or both.

(b) Organizations.—Any organization that commits any offense described in subsection (a) shall be fined not more than $10,000,000.

(Added Pub. L. 104–294, title I, §101(a), Oct. 11, 1996, 110 Stat. 3488.)

18 U.S. Code §1832. Theft of trade secrets

(a) Whoever, with intent to convert a trade secret, that is related to or included in a product that is produced for or placed in interstate or foreign commerce, to the economic benefit of anyone other than the owner thereof, and intending or knowing that the offense will, injure any owner of that trade secret, knowingly—

(1) steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains such information;

(2) without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys such information;

(3) receives, buys, or possesses such information, knowing the same to have been stolen or appropriated, obtained, or converted without authorization;

(4) attempts to commit any offense described in paragraphs (1) through (3); or

(5) conspires with one or more other persons to commit any offense described in paragraphs (1) through (3), and one or more of such persons do any act to effect the object of the conspiracy, shall, except as provided in subsection (b), be fined under this title or imprisoned not more than 10 years, or both.

(b) Any organization that commits any offense described in subsection (a) shall be fined not more than $5,000,000.

(Added Pub. L. 104–294, title I, §101(a), Oct. 11, 1996, 110 Stat. 3489.)