Fraud Roundup

Calif. State Fund receives $3 million-plus
San Diego Superior Court Judge William H. McAdam has ordered the owners of a San Diego area roofing company to pay $3 million in restitution to California’s State Compensation Insurance Fund, $81,649 in investigation costs and sentenced the company owners to three years of summary probation for workers’ compensation insurance fraud.

Paul Frederick Mayer and David Gordon Archer, owners of Mayer Roofing, originally were indicted by a grand jury in Feb. 2006. From 2001 to 2003, company officers created a scheme that underpaid workers’ compensation insurance premiums by $3 million. They created false payroll records thus understating the company’s workers’ compensation premium, according to SCIF.

Along with Mayer, 52, and Archer, 62, two other officials of the company were previously sentenced in this case. Laura Elena Caballero, 36, and Judy Kay Toledo, 50, pleaded no contest to a misdemeanor charge of workers’ compensation insurance fraud and were both sentenced to three years summary probation.

The fraud was uncovered by a routine audit. State Fund investigators informed the San Diego County District Attorney’s Office of their suspicions about the company’s payroll and premium practices. In Dec. 2004, the San Diego County District Attorney’s Office and the California Department of Insurance served a search warrant at six locations including Mayer Roofing Offices in San Diego, Riverside and Los Angeles Counties.

Mayer Roofing was licensed in 1993, and does business throughout Southern California and Fresno. It employs nearly 450 employees and is engaged primarily in new home construction. The company is headquartered in Escondido and has offices in Riverside, San Fernando and Bakersfield.

Producer Salcido’s license revoked
The Director of the Oregon Department of Consumer and Business Services has revoked the license of nonresident producer Manuel A. Salcido.

Salcido has been licensed in Oregon as a nonresident insurance producer from Nov. 2004. On Nov. 30, 2006, Salcido’s license expired. His last recorded residence and business address is located in Taos, N.M.

He failed to completely respond to DCBS when it sent a certified letter requesting that he provide to the Insurance Division about being convicted in the County District Court, Alamosa County, State of Colorado, for obstructing government operations; failing to disclose the above conviction his Oregon nonresident insurance producer license application; having his California nonresident insurance producer license placed on probation for failing to disclose the above conviction on his nonresident insurance producer license application; and for failing to report the above administrative action in violation of ORS 744.089(1). The letter was returned “Not deliverable as addressed unable to forward.”

The Oregon Insurance Division did not receive any response from Salcido, and thus took enforcement action against him, revoking his license.

Topics California Oregon