Fraud of the Week
Underreported Payroll/Workers Compensation – California
Amount – $2,358,307
After the death of a worker raised a red flag with the insurance company, an investigation discovered that the owner of a trucking company had underreported payroll by over $2 million to save on premiums for insurance for his company. The worker was found deceased in the work truck, but the worker had been classified as a salesman, not a truck driver. The worker was reclassified after the death but the insurer was suspicious. An investigation led by the Fresno County District Attorney's Office discovered that the deceased employee had worked for the company for 15 years, and that the company had underreported payroll by $2,358,307 between December 2018 and December 2021. The company owed $480,093 in unpaid premium for the difference.

