California Attorney General Rob Bonta announced a $7.7 million settlement with U.S. Healthworks (USHW), a chain of occupational and urgent care clinics, resolving allegations of corporate fraud. The allegations claimed that USHW withheld millions from the State of California in unclaimed property, violating the Unclaimed Property Law (UPL) and the California False Claims Act (CFCA). The settlement includes USHW handing over $1.5 million in unclaimed property to the State Controller’s Office.
“When companies cheat the State of California, they cheat the people of California,” said Attorney General Bonta. “U.S. Healthworks knowingly and repeatedly chose not to comply with the law by retaining millions of dollars that did not rightfully belong to them. This $7.7 million settlement signals my office is vigorously committed to protecting California against corporate fraud and financial misconduct.”
Urgent care centers sometimes have patient balances due to overpayment when insurance payments exceed expected amounts after patients pay out-of-pocket costs. Refund checks mailed to patients can be returned or remain uncashed.
In March 2022, Attorney General Bonta filed a complaint alleging that USHW held unclaimed property as early as 2001 but did not file required reports until 2018 after being notified of an investigation.
Under the UPL, intangible property unclaimed for more than three years must be reported and remitted to the state, with a mandated 12% annual interest on overdue property. The CFCA allows civil actions for treble damages and penalties against those who make false statements or documents to obtain or avoid paying money or property from/to the state.
Even when USHW filed reports in 2018-2021, it underreported its holdings, violating CFCA by concealing millions owed to California despite management being aware but choosing non-compliance to avoid audits.
A copy of the final judgment is available here.