Sacramento Man Arrested on Three Felony Counts of Insurance Fraud

On the night of Nov. 6, David Wayne Derr was arrested at his residence and booked into Sacramento County Jail for insurance fraud. If convicted, the 42-year-old man could face up to five years in state prison and/or a maximum fine of $50,000.

On July 1, 1998, Derr claimed to have injured his neck while working for Atlas Disposal in Sacramento. He alleged that he was jumping from a truck when the injury occurred and later filed for workers’ comp benefits with Superior National Insurance Company. According to investigators, Derr told several physicians that he had no previous injuries or treatments to his neck, yet medical records obtained during the investigation show that he had a history of degenerative neck injuries dating back to 1984.

During the investigation, Superior National received surveillance videotape with Derr engaging in physical activities that were contrary to his complaints. As a result of his allegedly false claims and misrepresentations, Superior National paid Derr $31,830 in workers’ comp benefits to which he was not entitled. The Sacramento County District Attorney’s Office is prosecuting the case.