William Huffman, 47, of Sacramento, Calif., owner of Capitol City Contractors was arrested recently on nine felony counts of workers compensation insurance fraud and tax evasion totaling $187,707 in losses.
Huffman allegedly underreported $755,899 in payroll to avoid paying workers comp premiums for dozens of employees.
An insurer notified the Department of Insurance of suspected fraud. A forensic audit of the company’s bank records revealed the alleged fraud. Detectives discovered evidence that Huffman was paying employees under the table and classifying some payroll checks as expenses for supplies and materials.
“Employers who commit workers compensation insurance fraud cheat the system leaving their employees at risk and their clients vulnerable to financial disaster.” said Insurance Commissioner Dave Jones.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
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