A Sacramento construction company owner has been arrested for allegedly not paying workers’ compensation premiums for employees.
William Huffman, 47, owner of Capitol City Contractors, was booked into Sacramento County jail on Wednesday on suspicion of making a false statement to lower the cost of workers’ comp, grand theft, unemployment benefit fraud, non-payment of contributions and other charges.
Huffman, whose company renovated homes, allegedly under-reported $755,899 in payroll to avoid paying workers’ compensation premiums for dozens of employees.
The state Department of Insurance was notified of his alleged fraud by an insurer and the company’s bank records were audited.
Detectives found that Huffman was paying employees under the table and classifying some payroll checks as expenses for supplies and materials, according to a Department of Insurance press release.
“Employers who commit workers’ compensation insurance fraud cheat the system, leaving their employees at risk and their clients vulnerable to financial disaster,” said Insurance Commissioner Dave Jones.