The State Compensation Insurance Fund (SCIF) is turning up the heat in its battle to collect on a $50 million jury award in a fraud case against a staffing firm. While Select Staffing is appealing the civil case, SCIF expanded its legal attack and filed federal racketeering charges in Los Angeles.

The carrier filed the federal complaint to establish a claim on an $80 million 2007 transfer from Select to its chief executive officer Stephen Sorensen. State Fund alleges that Select was either insolvent at the time of the transfer or became insolvent as a result.

"By reason of such Transfers, and unless such Transfers are avoided or other appropriate relief is granted as circumstances may require, State Fund suffered, and will suffer, damages proximately caused by such Transfers in an amount to be proven at trial," the complaint says, alleging that the transfers were made "with malice, oppression and intent."

The complaint is filed under the Racketeer Influenced and Corrupt Organizations Act, the so-called RICO statutes that the government uses to break up organized crime rings. Earlier, State Fund won a jury verdict finding that Select and Onvoi Business Solutions worked together to defraud SCIF from $30 million in premiums. SCIF also won $20 million in punitive damages and interest in the piggybacking case (for past coverage see  Select Staffing Fights … and  State Fund Scores …).

Stay tuned for additional coverage.

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(Filed by Brad Cain in San Francisco)