OAKLAND, Calif. (KRON) — Three suspects associated with various painting and construction companies have been charged for a workers’ compensation scheme that led to insurance carriers totaling in over $5 million of losses, the California Department of Insurance and Alameda County District Attorney’s Office announced Monday.
The suspects were arraigned Monday in county court.
Suspects include former owners of Signature Painting and Construction Inc., Eric Andrew Oller and Brian Christopher Mitchell, who were charged for one felony count of conspiracy to commit a crime, six counts each of felony insurance fraud and two counts of workers’ compensation fraud. Oller also owns another company called Valhalla Consulting.
A-1 World Class Painting owner Yama Sekander was also charged with one count of felony workers’ compensation fraud.
While running both Valhalla Consulting and Signature Painting and Construction Inc., Oller played a role in SPC allegedly paying its employees using VC’s bank account.
By doing that, SPC was able to alter its information about payroll costs to illegally reduce its insurance premiums. The company was also accused of paying some of its employees under the table in order to avoid paying the proper amount of taxes.
The two insurance companies negatively affected are AmTrust which lost approximately $1.9 million lost in insurance premiums and the State Compensation Insurance Fund which lost $3.1 million, respectively.
Oller, Mitchell and Sekander’s next court date will be on Nov. 18 at the East County Hall of Justice in Dublin.