2009- Stockton, California
Stockton Police Department
Justin A. Hallstrom was a Stockton Police Detective for the Family Crimes/Domestic Violence division. He devised a fraudulent plan for early retirement from the City of Stockton Police Department. He faked an on-the-job injury in order to collect Workers Compensation and to fraudulently start the process of Industrial Disability Retirement through the City of Stockton and CalPers (CA state public employees retirement system). He received workers compensation in 2009 and subsequently filed a false industrial disability retirement claim thereafter. City of Stockton and CalPers unknowingly approved his claim in March 2011- he researched on what to say by receiving input from his connection to the medical field as far as medical symptoms and complaints; he consulted on what to do and expect during the process of his claim, with one of his close friends, who happened to be leaving California for Louisiana after just retiring as a police officer from the City of Stockton Police Department.
Justin’s intentions to leave the City of Stockton Police Department and reasons to expedite the fraudulent claim process:
1) the City was about to switch to a different company- a change of insurance carriers from York to Corvel. He obtained knowledge that claims submitted through the current company (York) were more likely to successfully pass through the various “easy” stages/levels of claims processing to final approval, whereas the new insurance carrier, Corvel, seemingly had a more stringent criteria and claims process involving the MD evaluation and number of evaluations required. The idea was to file before the deadline date of the switch for insurance carriers in order for his claim to be processed and approved by York;
2) after witnessing the mass of City of Stockton employees, from various departments, retire or leave the police department AND/OR city altogether, due to the pre-bankruptcy government/administration troubles brewing and mounting within the City of Stockton. The legitimate (and non-legit) “cashing out” of many police officers in hastily retiring, along with the mass exodus of police officers leaving the department for other City police departments, were eminent key factors leading to the city bankruptcy, which shortly followed through and became national headline news;
3) not wanting to go back to patrol since employees were about to bid for new positions within the Police Department based on seniority. Detective positions, aside from basic Police Officer positions were being drastically cut, and with his seniority, Justin would miss the cutoff for a coveted Detective spot and any day position, which placed him at the risk of going back to patrol or working graveyard hours- things he personally did not want or believed he deserved;
3) he wanted to take a chance, in a non-traditional way, in becoming a professional poker player. He currently has not been successful in profiting from that quest, in which his fraudulent retirement allotment has funded. However, he stopped his quest shortly after achieving brief success in winning 2nd place (approximately $60000) in the 2009 WSOP Circuit Event at Harvey’s Lake Tahoe;
4) he believed his career was going nowhere (which is why he tried the poker route). He expected too much without putting in the work. He had just taken the Police Sergeant test and admitted his expectation to passing without actually studying for the exam. He didn’t pass- he didn’t promote.
He eventually gave up on that goal with the reasoning that being a new Sergeant would equal low seniority and horrible hours. He decided to climb the ladder another way- successful Field Training Officer and working once a week learning the Detective role. He was bitter when he was first passed up by his close friend Officer J. Larson, but then eventually landed a position in the Family Crimes Unit. Unfortunately, the aspirations in his law enforcement career didn’t last long because it was only two years after, that he started to openly talk about and devise his plan to commit retirement fraud.
“Free” money with the OPTION of working another job on the side, if that’s not enough yearly income…a widespread idea known and a perfect idea for many crooked police employees and those under the “protection” of CalPers. But are they really protected in receiving these benefits?
Seven years have passed from his profiting of untaxed income and benefits- roughly $55,000/yr x 7 yrs= $385,000.
And he gets it ALL because of a calculated move- he removed ALL beneficiaries.
On-going fraud…dirty scam.