fraud disabilty

[rghjudi]

What is the name of your state?What is the name of your state? California
I owned a body shop when my nephew (a savory charactor) came out to California after being fired from his job in another state, it was his first and only job he ever had.
He had a serious accident on the highway (drug deal gone bad, hit and run)with his motorcycle here and had no insurance of any kind.
After being in the hospital a number of months he still had to have therepy, at this time my sister asked if he could do things around my shop to help his self esteem etc. because he was family I said yes and he would occassionly come in and sweep or make coffee, he was not on payroll.
He used the address and received some state checks, I never questioned them or where they were coming from, I didn't think it was my bussiness until I caught him copying business checks with what was supposed to be my signature.
All hell broke loose my sister flew in and whisked him out of here.
I beleilieve he put in a claim for state disability useing forged checks from my business as payroll checks in order to prove he worked. I never knew of a claim but he could have intercepted the mail while he was there.
It was shortly after that I had all kinds of problems from the state saying I owed all kinds of money...I just couldn't keep up and finally closed my doors.
I never connected the two until recently.
With all the medical bills you would think he is totally disabled but he is not although he should be.
My sister(his mother) deals with these kinds of forms in her work, she maximizes insurance claimns.
So here's a guy I know is collecting disability that I've been paying for ( I have not received a state refund check in years).
What can I do?