A Mountain View company owner has been charged with felony workers’ compensation insurance premium fraud, county law enforcement officials reported today.
Arrested on April 12, the owner of BK Painting and Campbell resident Bill Won Yi, 42, has been accused of siphoning $200,000 from the workers' compensation insurance carrier between 2004 and 2010, according to the Santa Clara County District Attorney's Office.
The county claims that the defendant "misrepresented his Mountain View company’s safety record and grossly underreported its payroll by hiring unlicensed contractors and paying some employees’ wages in cash." BK Painting has a street address on the 600 block of Tyrella Avenue.
This results in inaccurate payroll figures being reported to the insurance company, who then lowers its premiums, the DA's office explained.
"This type of fraud scheme puts workers at risk of having insufficient or no insurance coverage if they are injured on the job," said Deputy District Attorney Christopher Kwok. "Furthermore, it illegally lowers operating costs for offending businesses, thereby giving them an unfair competitive advantage over law abiding businesses."
According to the DA's Office, California law requires all businesses with employees to maintain workers’ compensation insurance. The insurance premium is based on a number of factors including the nature of the business, safety record and the employees’ wages as reported by the employer.
The defendant will be arraigned on April 26 and if convicted of the charge, faces up to five years in jail. Yi could be ordered to pay full restitution.