William Huffman booking photo
SACRAMENTO — 47-year-old William Huffman of Sacramento has been arrested on nine felony counts of workers’ comp insurance fraud and tax evasion. According to the CA Department of Insurance media release, total losses in this case reach over $180,000.
It is alleged that Huffman underreported over $750,000 in payroll to avoid paying premiums on workers’ comp for dozens of employees. When an insurer notified the Department of Insurance after finding discrepancies in the reports, the department commissioned a forensic audit of the company’s bank records which in turn revealed the alleged fraud.
Huffman had apparently been paying employees under the table and classifying some payroll checks as business expenses such as supplies and materials.
“Employers who commit workers’ compensation insurance fraud cheat the system, leaving their employees at risk and clients vulnerable to financial disaster,” said Insurance Commissioner Dave Jones in the department media release.
Huffman was booked into Sacramento County Jail with bail sat at $100,000.
