List of Restaurants Implicated in Health Insurance Fraud Crackdown Released
On Friday, City Attorney Dennis Herrera sent letters to several dozen businesses under investigation for consumer fraud for pocketing surcharge funds meant to go toward employee health insurance. Yesterday the Chronicle released the list of the businesses who received letters from Herrera, including S.F. restaurant scene heavy-hitters as the Mina Group, Prospect, and Wayfare Tavern. However, it should be noted that a business' placement on the list does not necessarily mean that it is guilty of nefarious deeds -- many of the restaurants could be there from reporting error or other discrepancy. Most of the businesses paid some funds to employee health insurance; of the nearly 100 businesses on the list, only Squat & Gobble paid no money toward employee health insurance (though it did collect more than $160,000 from its customers).
Flickr/dirk.dekok Squat & Gobble is one of the implicated restaurants.
As outlined on Friday, the named businesses have until April 10 to come into compliance under Herrera's amnesty plan or risk civil litigation.