Panel suggests Nevada anti-fraud unit may be axed

Assembly Ways and Means members suggested Wednesday that two anti-fraud units in the office of Attorney General Brian Sandoval be eliminated because they aren't cost-effective.

An insurance fraud unit in the state attorney general's office costs almost $1 million a year but has recovered only $126,915 in the first six months of this fiscal year.

A workers compensation fraud unit in the office has a budget in excess of $2.5 million a year but has recovered only $60,265 in the second half of 2002.

Sandoval, who took office in January, told the committee the performance of the insurance fraud unit is "a great concern of mine." He said members of the unit will meet with major insurers in an attempt to improve.

The unit investigates cases in which individuals try to defraud insurance companies.

Insurance companies finance the state fraud unit, but Assembly members said the insurance companies can deduct that cost from their premium taxes.

Assemblyman Bob Beers, R-Las Vegas, asked whether the insurance fraud unit was cost-effective. Assemblywoman Chris Giunchigliani, D-Las Vegas, and Assembly Minority Leader Lynn Hettrick, R-Minden, both suggested the workers compensation fraud unit be scrapped.

The state unit looks into cases where workers may fake injuries or cases where employers may escape having industrial insurance coverage.