A Lodi, Calif. man was arrested on numerous felony charges as a result of a joint investigation by the California Department of Insurance (CDI) Criminal Investigations Branch’s Fraud Division, the San Joaquin County District Attorney’s Office, the Franchise Tax Board (FTB) and the Employment Development Department (EDD).
Joseph Charles Campbell, 36, self-surrendered recently on 13 felony counts of Insurance Code violations, seven counts of Unemployment Insurance Code violations and five counts of Revenue and Taxation Code violations. On Dec. 19, Campbell pled guilty to five counts of insurance fraud, two Unemployment Insurance Code violations and two Revenue and Taxation Code violations. Sentencing is set for March 3, 2003.
According to investigators, Campbell reportedly filed a workers’ compensation claim on Dec. 11, 1999, while working for Stockton Roofing. During an investigation of Campbell’s workers’ compensation claim, it was rportedly found that Campbell was working and running a business named Campbell Roofing during the same time he was collecting disability payments from the State Compensation Insurance Fund (SCIF). Both Stockton Roofing and Campbell Roofing were insured by SCIF.
Subsequent to an investigation, investigators discovered that Campbell underreported his payroll to SCIF for Campbell Roofing, which allowed Campbell to pay significantly less in workers’ compensation premiums. Additionally, investigators learned that Campbell had reportedly not filed state taxes or paid EDD taxes since 1996. Campbell later admitted he worked while collecting Total Temporary Disability from SCIF and that he had underreported his payroll in order to reduce the amount of workers’ compensation premiums he would have to pay.
Due to Campbell’s reported fraudulent activities, it is estimated that SCIF was defrauded up to $200,000 in workers’ compensation premiums. An independent auditor will review the financial records to determine the actual loss.
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