Sacramento Flooring Enterprise Homeowners Charged in $3.eight Million Staff’ Compensation Fraud Scheme, CA. Division of Insurance coverage Experiences

May 17, 2021 – SACRAMENTO, Calif. – Ryan Black, 45, formerly Fair Oaks, and Curtis Davis, 53,, Penryn, have been charged with three employee compensation fraud offenses After allegedly underwriting payroll and employees by more than $ 30 million to illegally cut employee compensation insurance premiums, resulting in an approximate loss of $ 3,840,956 to three insurance companies.

Black and Davis owned Apex Industry Solutions Inc. (Apex), a Sacramento-based flooring installation company. In October 2017, the then-insurance carrier of Apex found that two people who worked for Apex were doing floor installations without a license and were given 1,099 forms as independent contractors instead of W-2 forms as employees. However, Black identified the two workers along with two other workers as Apex employees.

The California Department of Insurance opened an investigation after receiving a report of suspected fraud from the Apex insurance carrier in April 2018. The investigation found that Black had a large number of people installing flooring and reported minimal to no flooring pay slips to the carrier.

The investigation also found that Black and Davis had conspired to report payrolls to two other insurance companies who had been their previous carriers. Over a five-year period, from 2013 to 2018, the underreported payroll was approximately $ 30 million, resulting in an approximate loss of $ 3,840,956 for three insurance companies.

Black was indicted on Wednesday May 12, 2021 and Davis on May 5, 2021. This case is being prosecuted by the Sacramento District Attorney.

Note:

• Ryan Black currently lives in Cleveland, Tennessee.

Founded in 1868, the California Department of Insurance is the largest consumer protection agency in California. In California, insurers collect US $ 340 billion in premiums annually. Since 2011, the California Department of Insurance has received more than 1,000,000 calls from consumers and helped recover over $ 469 million in claims and premiums. Please visit the Ministry of Insurance’s website at www.insurance.ca.gov. Non-media inquiries should be directed to the consumer hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
Source: CA. Insurance department