Sacramento construction company owner arrested for insurance fraud
News: 2016 Press Release
SACRAMENTO, Calif. - William Huffman, 47, of Sacramento, owner of Capitol City Contractors was arrested yesterday 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' compensation 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.
Huffman was booked into Sacramento County Jail. He will be arraigned today at 1:30 PM at Sacramento Superior Court, Room 63. Bail is set at $100,000. The Sacramento County District Attorney's Office is prosecuting this case.
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- William Huffman's booking photo can be found on CDI's Flickr: https://www.flickr.com/photos/ca_dept_insurance/23623481184/in/album-72157663251354956/
- The company dealt mainly in home renovations.
- Homeowners should always check to make sure anyone they hire has a valid workers' compensation insurance policy. Consumers can verify a contractor's license by visiting: https://www2.cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.