Roofing Co. Engages in Fraudulent Activities

September 2, 2002

The death of a roofing company employee has resulted in the arrest of four Bay area residents on multiple felony counts including manslaughter, insurance premium fraud, unemployment insurance tax violations, labor code safety violations, and revenue and tax code violations.

San Francisco residents Christie Binn Chung, owner of 101 Roofing Inc.; Dat Kham Ha (AKA Peter), foreman; and Bao Thien Luong, foreman, were arrested following a joint investigation by the San Francisco District Attorney’s Office, Cal OSHA, Employment Development Department (EDD), Franchise Tax Board and the CDI Criminal Investigations Branch’s Fraud Division.

The fraud investigation was initiated by EDD in 1999 when 101 Roofing was suspected of allegedly paying employees in cash to avoid state taxes and workers’ compensation premiums. Further investigation by the CDI’s Fraud Division revealed that the company was allegedly underpaying their workers’ comp premiums. Chung also reportedly cashed checks from customers through check cashing services in order to avoid his business bank accounts.

In July 2000, a 101 Roofing employee fell to his death while working on a roof, resulting in the manslaughter charge. It is alleged that the company did not have the proper safety gear available to its employees.

State Compensation Insurance Fund, the workers’ comp carrier for 101 Roofing, estimated premium losses at $499,245.

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