A former UPS mechanic plead guilty to workers’ compensation fraud following video evidence showing he was never injured in a reported incident.
Derrick Hodge pled to felony insurance fraud and was sentenced to 90 days in jail, two years of probation and was ordered to pay $50,000 in restitution to Liberty Mutual Insurance.
Hodge was a mechanic at a UPS facility in Grass Valley. In 2023, he claimed he was injured while walking out of a door at the facility when a “microwave-sized” chunk of ice fell from the roof and struck him on the back of his head and neck, according to the Sacramento District Attorney’s office.
Hodge sought medical treatment for his injuries resulting from the incident and was eventually placed off work. In 2025, the Sacramento County D.A.’s Insurance Fraud Unit began an investigation after it was informed that Hodge was suspected of filing a false injury claim.
The unit found video surveillance showing that nothing fell from the UPS facility roof and Hodge was not injured. Surveillance video reportedly showed him engaging in activities beyond what he told his doctors he could perform following the reported injury, according to the D.A.’s office.
His fraud resulted in losses of $50,000 to UPS and Liberty Mutual Insurance for coverage of worker’s comp insurance.
Is this the future of home insurance in disaster-prone areas: The carrier coordinates the home-hardening work, from connecting homeowners with contractors to installing sensors, and maybe even finances the cost of the mitigation?
“That’s our belief and that’s why we started the company,” said Dan Preston, CEO of the startup known as Stand Insurance Exchange.
The reciprocal launched last week in the Florida market with a tweak to the standard business model and a nod to the growing recognition that more storm-resistant homes may be the best way to limit claims and premiums.
Preston, the former head of tech-heavy Metromile auto insurance company, said that, historically, insurers have had just two main tools at their disposal to manage risky areas: Exit the market altogether, or raise premiums. He believes there’s a third method—working closely with property owners to mitigate the risk and reduce claims and premiums.
“Ultimately, what we’re finding is that in most cases for homeowners, the combined cost of mitigation, with the resulting lower premium, is less than what they’re paying now,” Preston told Insurance Journal.
