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CA Department of Insurance

Insurance Commissioner Jones Announces Arrest of Sacramento Business Owner for Premium Fraud

Dave Althausen
June 7, 2011 8:29 AM

On April 13, 2011, Eric Robert Schneider, 48, of Sacramento and the owner of CM Builders, Inc. of Rancho Cordova was arrested on a warrant charging him with one count of violating Insurance Code section 11880. The State Compensation Insurance Fund (SCIF) reported that Schneider had misrepresented the operations of his business and underreported his payroll in order to avoid paying less than the appropriate premium for workers' compensation insurance. SCIF calculated the premium loss at $50,394 for the 2008-2009 policy period. Bail was set at $15,000. If convicted, Schneider faces up to five years in prison, a fine not to exceed $50,000 or double the value of the fraud, and restitution in the amount of the theft as decided by the court.

 

 

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