Joint investigation leads to arraignment of El Dorado County business owners for insurance fraud
News: 2022 Press Release
SACRAMENTO, Calif. — Troy Williams, 49, of Angels Camp, Nanci Morman, 68, of Somerset, and John Allison, 63, of Rocklin, were arraigned yesterday on multiple felony counts of insurance fraud after a joint investigation with the California Department of Insurance and the El Dorado County District Attorney’s Office revealed the defendants allegedly conspired together to illegally lower their company’s workers’ compensation insurance premiums and defraud the State Compensation Insurance Fund (State Fund) of over $125,000.
Williams has owned and operated a framing business called Archer Building Company since 2001, which reported carpentry payroll between 2013 and 2016; however, in 2016 the company’s work-related claims costs increased, which would increase its worker’s compensation insurance rates.
The joint investigation found that Allison, an Archer Building Company employee, created Allison Development. Between 2016 and 2020, Archer Building Company diverted its carpentry payroll to Allison Development in order to avoid paying accurate workers’ compensation insurance premiums. In 2020, Allison Development’s workers’ compensation policy was cancelled and the employees transferred back to Archer Building Company.
The investigation found Archer Building Company and Allison Development attempted to defraud State Fund of $127,795 by not paying the correct amount of premium. Also, it was revealed that Morman was the bookkeeper and point of contact for insurance audits for both companies.
On March 10, 2022, Williams and Morman self-surrendered to the El Dorado County Jail. Allison self-surrendered on March 14, 2022. They are scheduled to return to court on May 26, 2022. The El Dorado County District Attorney’s Office is prosecuting this case.
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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.