Crime - Sacto 911

Sacramento construction company owner pleads guilty to insurance fraud

A Sacramento construction company owner has pleaded guilty to felony insurance fraud and tax evasion.

William Alan Huffman, 47, was arrested in January on charges arising from his ownership of Capital City Construction Co. He entered the guilty plea Thursday in Sacramento Superior Court, according to a Sacramento County District Attorney’s Office news release.

For more than three years, Huffman falsely reported to his workers’ compensation insurance carriers that he had either no employees or very few, when he often had several employees, authorities said. This allowed him to avoid paying the insurance premiums he actually owed.

During the same period, he paid his employees in cash or otherwise failed to collect and turn over the required unemployment insurance deductions to the California Employment Development Department. From Feb. 1, 2012, through June 30, 2015, Huffman under-reported his payroll by an estimated $1,092,842, defrauding his insurance companies, Zurich Insurance and Wesco Insurance, of a combined $187,757 in premiums and $115,922 owed to the Employment Development Department.

Under the terms of the plea agreement, Huffman will be ordered to serve one year in county jail and will be on formal probation for five years. He also will be ordered to pay restitution in the amount of $303,680. He is to be sentenced March 24 by Sacramento Superior Court Judge Jaime Román.

Cathy Locke: 916-321-5287, @lockecathy