State Compensation Insurance Fund will collect $135,000 in restitution from a San Diego County-based construction firm as part of the sentence in a workers' compensation insurance fraud case. Ray Charles Gauthier, owner of Gauthier Construction, was ordered to pay restitution following his conviction on felony workers' compensation and unemployment insurance fraud. In addition, Gauthier was sentenced to three years probation and must pay approximately $60,000 to the State Employment Development Department and $102,000 to the State Franchise Tax Board.
State Fund audits revealed that Gauthier had falsified information to avoid paying proper workers' compensation premiums. It was discovered that he had been engaged in a cash-pay scheme with a subcontractor, in which he would pay the subcontractor a percentage of the payroll so that the subcontractor could use that money to pay Gauthier employee's cash wages. The cash pay to employees was not reported to State Fund.
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