East Bay Construction Company owners charged with $ 5 million in workers’ compensation fraud – CBS San Francisco
OAKLAND (CBS SF) – The Alameda County District Attorney’s Office has charged three East Bay paint and construction company owners in an alleged $ 5million workers’ compensation fraud scheme dollars.
Prosecutors said Eric Andrew Oller and Brian Christopher Mitchell, former owners of Signature Painting and Construction (SPC) in Walnut Creek, have been charged with conspiracy, insurance fraud and workers’ compensation.
The Alameda County District Attorney also charged Yama Sekander, owner of A-1 World Class Painting, with workers’ compensation fraud.
According to prosecutors, the SPC allegedly used several methods to illegally attempt to reduce their workers’ compensation premiums.
“If a business creates an environment in which it falsely pays a lower insurance premium, that business has an unfair competitive advantage over a law-abiding business,” said District Attorney Nancy O’Malley.
Some of the methods allegedly used by the SPC include the use of A-1 as a front company and another company owned by Oller to pay its employees. The company also reportedly misclassified employees and underreported wage costs.
Prosecutors also accuse Mitchell and Oller of moving employees from one company to another to save money on insurance, paid workers illegally and also asked some injured employees to report working for a company. while they were working for another.
According to the DA office, the State Compensation Insurance Fund lost about $ 3.1 million in premiums, while AmTrust lost about $ 1.9 million under the program.
Mitchell, Oller and Sekander were arrested Monday morning. Prosecutors said their next court appearance was scheduled for November 18.