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The California Division of Workers' Compensation is considering filing a criminal complaint against a Los Angeles attorney who threatened to cut off referrals to doctors who did not donate to political campaigns.

DWC spokeswoman Susan Gard said the letter by applicants' attorney Lawrence Stern appears to be a violation of Labor Code section 3215. The law states that any person who offers or receives compensation or inducement for referring clients or patients is guilty of a crime. The penalty is not specified.

"In the same way that doctors are not allowed to accept any remuneration or consideration for taking the case, they can't be forced to patronize a certain political party," Gard said. "They can't receive a kickback and they can't be asked for a kickback for getting a case. Doctors should get these cases on their merits."

As reported by WorkCompCentral on Wednesday, Stern sent letters to agreed medical evaluators and qualified medical evaluators stating that California Applicants' Attorneys Association (CAAA) members had made a "pact" not to use the services of any doctor who has not contributed at least $2,500 to the upcoming elections and urging the defeat of Gov. Arnold Schwarzenegger. The letter was sent on June 26, only a few days after CAAA members returned from their summer convention.

The DWC issued a "newsline" announcement on Thursday indicating that Stern is member of the CAAA board of governors and admonishing system stakeholders not to interfere with the independence of AMEs. In an interview with WorkCompCentral on Thursday, Gard asked why CAAA had not issued any statement condemning the letter. CAAA President David Rockwell and several prominent members of the organization were included on a list of recipients in an e-mail version of the letter obtained by WorkCompCentral.

"Why wait three weeks?" Gard asked. "CAAA should have come out right away and said they don't condone that behavior and that is improper."

The DWC's mention of CAAA in the announcement infuriated Rockwell. He said DWC officials did not ask him what action he had taken before attacking the organization. In fact, he said he sent an e-mail to Stern three hours after he received a copy of the letter on June 26, telling him that the threat was improper.

"For them not to contact me means they don't want to present a fair picture here," Rockwell said. "It's one person who went over the line."

But Rockwell acknowledged that he did not communicate to any other CAAA members that Stern's threat was improper until Thursday, when he sent an e-mail to members whose addresses were in possession of the organization. Rockwell said CAAA is a voluntary organization and he believed when he received Stern's letter on June 26 that a private rebuke was appropriate.

By mentioning CAAA, Rockwell said, the DWC has once again shown that the Schwarzenegger administration is biased against applicants' attorneys. He said both Gard and acting Administrative Director Carrie Nevans snubbed him when he made friendly overtures toward them during agency public hearings. He said he believes Nevans speaks frequently with representatives for the insurance industry.

Rockwell said Stern's letter was wrong, he thinks the DWC is going overboard with a criminal complaint because he does not believe Stern had any criminal intent when he sent it.

"He is somebody who was overzealous," Rockwell said. "He should be admonished. He got the message."

Stern did not return a call by WorkCompCentral on Thursday. He told WorkCompCentral during an interview Tuesday that although he should not have used CAAA's name in the letter, he has a right to refer clients to any AME he chooses.

Gard said the DWC has consulted State Attorney General Bill Lockyer's office for legal advice on how to deal with Stern's letter. She said one option is to file a criminal complaint with the Los Angeles County District Attorney's Office.

"It's shocking that he would say those things, to attempt to coerce medical providers that way," Gard said.

-- By Jim Sams, Senior Editor

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