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

A certain HR company inflated injury workers’ “compensation” payments

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

Then had the workers transfer the received funds

All to Qian’s personal account

Qian then transferred the money back to the company account

After the funds were cycled through,

The initial transfer records and fake agreements

Became their basis for fraudulently claiming high insurance payouts

……

“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 was pressured by the company’s management to complete an unusual fund transfer: transferring a payment from the company into his account and then transferring it back in full to a designated company account. Later, the initial transfer record was used by the company to apply for workers’ compensation from the insurance company. Recently, the Shanghai Huangpu District Procuratorate filed a public prosecution, and the defendant company and three individuals were lawfully convicted by the court.

In 2020, Ma established a human resources company, mainly providing labor services to container factories. To avoid employment risks, Ma purchased employer liability insurance, agreeing that the insurance company would cover any work-related 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 initial payment, then submit proof of injury and bank transfer receipts to the insurance company to claim compensation. However, Ma and his partner Zhang had malicious intentions during the claims process: they first signed a compensation agreement with the injured worker for an amount higher than the actual compensation, transferring the inflated “compensation” from the company account into the worker’s account, then had the worker transfer the full amount to Qian’s personal account, and Qian then transferred the money back to the company account. After the funds were cycled through, the initial transfer records and fake 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, leading the insurance company to unknowingly process duplicate claims.

In early 2024, during routine data review, the insurance company discovered that in several submitted claims, only disability compensation was requested 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 prosecutors thoroughly examined the case files and, after analysis, determined 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 procuratorate commissioned a professional forensic accounting firm to audit the flow of funds and the amount of insurance fraud. The audit revealed that the HR company involved had fraudulently obtained over 490,000 yuan in insurance money. During the review and prosecution, prosecutors lawfully informed the three suspects of their legal rights and explained the leniency policy for confessing and accepting punishment. Confronted with comprehensive evidence, Ma, Zhang, and Qian all admitted to the fraudulent process of inflating claims and exaggerating losses to cheat insurance money, voluntarily signing confessions and pleas.

The Huangpu District Procuratorate held that the HR 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 HR 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; Ma was sentenced to three years in prison; Zhang and Qian received three and one-year prison sentences, respectively, both suspended, and all were fined.