Sacramento flooring business owners charged in $3.8 million workers’ compensation fraud scheme
News: 2021 Press Release
SACRAMENTO, Calif. — Ryan Black, 45, formerly of Fair Oaks, and Curtis Davis, 53, of Penryn, were both charged with three felony counts of workers’ compensation fraud after allegedly underreporting payroll and employees by more than $30 million to illegally save on workers’ compensation insurance premiums, resulting in an approximate loss of $3,840,956 to three insurance companies.
Black and Davis were owners of Apex Industry Solutions Inc. (Apex), a flooring installation company located in Sacramento. In October 2017, Apex’s insurance carrier at the time discovered that two individuals working for Apex were performing floor installations without a license and were receiving 1099 forms as independent contractors instead of W-2 forms as employees. However, Black identified the two workers, along with two additional workers, as employees of Apex.
The California Department of Insurance launched an investigation after receiving a report of suspected fraud from Apex’s insurance carrier in April 2018. The investigation revealed Black had a large number of flooring installation employees, and had reported minimal to no flooring installation payroll to the carrier.
The investigation also found Black and Davis conspired to underreport payroll to two additional insurance companies who had been their previous carriers. Over the span of five years, from 2013 through 2018, the underreported payroll totaled approximately $30 million, which resulted in an approximate loss of $3,840,956 to three insurance companies.
Black was arraigned on Wednesday, May 12, 2021 and Davis was arraigned on May 5, 2021. This case is being prosecuted by the Sacramento County District Attorney’s Office.
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Media Note:
- Ryan Black currently resides in Cleveland, Tennessee.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
