Dubious Duo Work the System

December 11, 2000

On Nov. 1, Bakersfield residents Lonzoe Richard Hart, 64, and Barbara Jean Cornelius, 52, were arrested on workers’ compensation fraud charges.

Hart and Cornelius were booked into Kern County Jail on 23 felony counts following an 18-month investigation by the CDI’s Criminal Investigations Bureau, the Kern County District Attorney’s Office, the Department of Motor Vehicles and auditors from the Employment Development Department (EDD), which revealed underreporting of wages paid to employees.

The complaint alleges that Hart and Cornelius made misrepresentations of wages paid to employees to the State Compensation Insurance Fund and EDD.

It further alleges that the two conspired to misrepresent facts to State Fund, causing a loss of more than $35,000 in premiums. EDD auditors assessed more than $69,000 for underreported payroll taxes and penalties.

If convicted, Hart and Cornelius could face up to 19 years in state prison. Bail for each was set at $25,000.

The Kern County District Attorney’s Office is prosecuting the case.

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Insurance Journal Magazine December 11, 2000
December 11, 2000
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