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Two Southern California men have been charged with conspiring to defraud the State Compensation Insurance Fund (State Fund) of more than $18 million. David Zahler, 52, of Huntington Beach, and David Tai, 66, of Hacienda Heights, surrendered to police on November 26, following a two and a half year CDI investigation.

Zahler and Tai allegedly conspired to defraud the State Fund of over $18 million in insurance premiums they owed for the worker’s compensation policy issued to Staffing Services, Inc., a temporary employment company with thousands of employees. It is alleged that the men purposely misrepresented the types of employees for which they obtained workers comp coverage, in order to pay $18 million less in premium payments. Zahler was the Chief Executive Officer and Tai the Chief Financial Officer for Staffing Services. Staffing Services Headquarters is located in Bellflower.

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