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Gone in 60 Seconds! Another Life-Changing Event!

In a recent release by the California Insurance Commissioner, it was learned that after years of scamming a business operator’s life was changed rather dramatically, in 60 seconds.  After being arrested on June 24th for multiple FELONY charges for illegal business operations and workers compensation insurance fraud, his life changed from being a small business juggernaut to being arrested and with the prospect, if convicted, of facing up to 18 years in state prison and $260,000 in fines

In a matter of 60 seconds – the time it took to receive investigators into his office, to be read his rights, and to stretch out his wrists for a set of handcuffs, his life changed rather dramatically.  Here is the overview, from the CDI (California Department of Insurance):

HUMBOLDT COUNTY, California:  A plumbing company owner was arrested June 24, 2014, on felony charges of workers’ compensation insurance fraud and grand theft.

A joint investigation with the Department of Insurance and Humboldt County District Attorney’s Office uncovered the plumber’s multiple illegal business operations, alleged warranty scam and insurance fraud.

During the course of the investigation, it was discovered that the owner of the company deliberately failed to obtain workers’ compensation insurance for his employees. There were instances in which employees were injured and were discouraged from claiming workers’ compensation benefits. As a result, severely injured workers were unable to afford their medical costs for treatment and suffered significant financial hardships.  Further investigation revealed that the company’s owner was also allegedly operating a warranty replacement scam.  

I am certain that none of our clients face this type of penalty; our clients report their payroll accurately and truthfully. But, we all may have friends who have friends who might be skirting the law and who may face these types of penalties should they catch the attention of the insurance commissioner’s offices.  Let’s get the word out:  It’s a better ROI, in the end, to handle your workers compensation responsibilities now, rather than face the music later.

At Huggins Dreckman Insurance, we can help; call us today for competitive bids for workers compensation. Please call Theresa (ext 16) or Stan (ext 15) at 562-594-6541.    

PS:  This applies particularly to apartment owners who have people who receive breaks in their rent and who become de facto apartment managers or employees because they clean up the newly vacant apartments or sweep the premises and watch out over the property.    You all need workers compensation insurance in the worst way:  yesterday.  Call us today for help!

Huggins Dreckman Insurance, Insuring Your Success!


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