Fraud of the Week

Workers Comp Fraud – California

Amount – $382,104

A buisnessowner pleaded guilty to six charges of insurance fraud and grand theft after being investigated by the California Department of Insurance, the Solano County District Attorney's Office and the Employment Development Department. The investigation revealed that he underreported payroll over the course of nine years by $989,823. This underreporting illegally reduced his workers compensation premiums by $382,104 and unpaid payroll tax of $347,520. He was convicted and placed on formal probation, ordered to pay more than $725,000 in restitution and ordered to surrender his contractor's license.