Misclassifying employees leaves business owner facing multiple felony counts
Madison Voss April 19, 2013 1:48 PM
San Jose -Brian Adams, 61, surrendered to the Santa Clara County Sheriff's Office on Tuesday April 16, 2013. The Santa Clara County District Attorney's Office has filed multiple felony counts of workers' compensation insurance premium fraud. Adams has posted $30,000 bail.
In April of 2011 the California Department of Insurance Fraud Division received an anonymous tip reporting South Valley Resource Center (SVRC) was allegedly misclassifying employees on their workers' compensation insurance policy. Adams, owner of SVRC, operated several developmentally disabled residential care facilities in the Bay Area and Redding. An investigation revealed that Adams had been under-reporting payroll in order to reduce his worker' compensation insurance premium from April 2007 to April 2011, resulting in a substantial loss of approximately $150,000 to insurance carriers.
This case was investigated by the California Department of Insurance Fraud Division.