Sacramento construction company owner arrested for workers’ comp insurance fraud

A home remodeling contractor in Sacramento was arrested on January 7, 2016 for workers’ compensation fraud.

William Huffman, 47, of Sacramento, owner of Capitol City Contractors was arrested on nine felony counts of workers’ compensation insurance fraud and tax evasion totaling $187,707 in losses.

Huffman allegedly underreported $755,899 in payroll to avoid paying workers’ compensation premiums for dozens of employees.

An insurer notified the Department of Insurance of suspected fraud. A forensic audit of the company’s bank records revealed the alleged fraud. Detectives discovered evidence that Huffman was paying employees under the table and classifying some payroll checks as expenses for supplies and materials.

“Employers who commit workers’ compensation insurance fraud cheat the system leaving their employees at risk and their clients vulnerable to financial disaster.” said Insurance Commissioner Dave Jones.

Huffman was booked into Sacramento County Jail. Bail is set at $100,000. The Sacramento County District Attorney’s Office is prosecuting this case.

Homeowners should always check to make sure anyone they hire has a valid workers’ compensation insurance policy. Consumers can verify a contractor’s license by visiting:

Payroll Masters has partnered with e-Comp to offer companies Pay-As-You-Go Workers’ Compensation Insurance, click here for a quote.


Source: CA Department of Insurance  |  2015 © Copyright Payroll Masters

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