William Alan Huffman, 47, pled guilty recently to felony insurance fraud and tax evasion charges arising from his ownership of Capitol City Construction Company in Sacramento, Calif.
For more than three years, Huffman falsely reported to his workers compensation insurance carriers that he had either no employees or very few, when in fact he often had several employees. This allowed him to avoid having to pay the insurance premiums he actually owed.
During the same period, he paid his employees in cash or otherwise failed to collect and turn over the required unemployment insurance deductions to the California Employment Development Department (EDD). From February 1, 2012 through June 30, 2015, Huffman under reported his payroll by an estimated $1,092,842, defrauding his insurance companies, Zurich Insurance and Wesco Insurance, of a combined $187,757 in premiums and $115,922 owed to EDD.
Under the terms of the plea agreement, Huffman will be ordered to serve one year in county jail, be on formal probation for five years, and pay restitution in the amount of $303,680.
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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