"Cooperate, and you'll get your work injury compensation soon; if not, you won't get a single penny."

A certain human resources company inflated the “compensation” for injured workers.

Transferred from the company’s account into the workers’ accounts.

Then had the workers transfer the received funds.

All transferred to Qian’s personal account.

Qian then transferred the money back to the company’s account.

After the funds completed circular transfer, the initial transfer records and false agreements became the basis for their insurance fraud to obtain high claims.

…

“Cooperate, and you’ll get your workers’ compensation soon; if not, you won’t get a penny.” After suffering a work injury, worker Xiao Lei, under pressure from the company’s management, completed an unusual fund transfer: transferring a sum from the company into his account and then transferring it back in full to a designated company account. Later, the initial transfer records were used by the company to apply for workers’ compensation from the insurance company. Recently, the case was prosecuted by the Huangpu District Procuratorate in Shanghai. The defendant company and three individuals were lawfully convicted by the court.

In 2020, Ma established a human resources company, mainly providing labor services for container factories. To avoid employment risks, Ma purchased employer liability insurance, agreeing that the insurance company would cover compensation if workers suffered work injuries. From August 2020 to June 2021, multiple workers suffered work injuries, with disability levels ranging from level ten to level seven.

According to normal claims procedures, after a worker sustains a disability, the company should make an advance payment, then, with bank transfer receipts and injury certification, apply for compensation from the insurance company. However, Ma and his partner Zhang had malicious intentions during the claims process: they first signed a compensation agreement with the injured workers for an amount higher than the actual compensation, transferring the inflated “compensation” from the company account into the workers’ accounts, then had the workers transfer the full amount to Qian’s personal account, who then transferred the money back to the company account. After the funds completed circular transfer, the initial transfer records and false agreements became their basis for fraudulently claiming high insurance payouts. They also deliberately concealed the fact that the company had paid workers’ compensation insurance premiums and received payouts for some employees, causing the insurance company to unknowingly process duplicate claims.

In early 2024, the insurance company, during routine data review, discovered that several claims submitted by the company only requested disability compensation without medical expenses, which was inconsistent with normal procedures, prompting them to report the case.

On March 3, 2025, the police transferred the case to the Huangpu District Procuratorate for review and prosecution, suspecting insurance fraud. The case prosecutor thoroughly reviewed the case files and, after analysis, believed that the insurance proceeds (claims) ultimately entered the company’s account and belonged to the company. The case was classified as a corporate crime, with Zhang, Qian, and the company involved in a joint offense.

To accurately determine the amount involved, the prosecution commissioned a professional forensic accounting firm to audit the flow of funds and the amount of insurance fraud. The audit revealed that the human resources company involved had defrauded over 490,000 yuan in insurance funds through the above methods. During the review and prosecution, the prosecutor lawfully informed the three suspects of their legal rights and explained the leniency policy for confessing and accepting punishment. Confronted with a complete chain of evidence, Ma, Zhang, and Qian all admitted to the fabricated compensation process, exaggerated losses, and fraudulently obtaining insurance money, voluntarily signing confessions and pleas.

The Huangpu District Procuratorate held that the human resources company and the three suspects’ actions constituted insurance fraud. In the joint crime, Ma played a leading role and was the principal offender; Qian was involved under instructions and played a minor role, making him an accessory. On September 3, 2025, the prosecutor formally charged the company and the directly responsible personnel Ma, Zhang, and Qian.

Considering their confessions, remorse, and restitution, the court ultimately sentenced: the company was fined 80,000 yuan for insurance fraud; Ma was sentenced to three years in prison; Zhang and Qian received three-year and one-year prison sentences, respectively, both suspended, and were fined accordingly.

Source: Procuratorial Daily · Mingjing Weekly

【Source: Hegang Suibin Procuratorate】