Calif. Man Arrested for Workers’ Comp Fraud

January 9, 2003

Ralph Taeger, 66, of Placerville, Calif. was arrested for workers’ compensation premium fraud on Jan. 2, 2003.

Taeger surrendered to California Department of Insurance (CDI) investigators and was booked into the El Dorado County Jail where bail was set at $10,000. If convicted, Taeger could face up to five years in state prison and/or a maximum fine of $50,000. The Sacramento County District Attorney’s Office is prosecuting the case.

The CDI investigation revealed that Taeger, owner of Taeger’s Firewood underreported his company payroll to the State Compensation Insurance Fund (SCIF) in order to avoid paying the proper workers’ compensation insurance premiums. During the period of March 1, 1998 through March 1, 2002, SCIF was defrauded of $357,024.99 in premium monies.

As a result, SCIF received a small amount of premium but was subjected to a larger loss exposure than the premium amount would normally cover.

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