Execs at El Dorado Hills firm charged with worker’s compensation insurance fraud [The Sacramento Bee]

Sacramento Bee (CA)

The owner of the Archer Building Co. in El Dorado Hills and two company executives face charges related to allegedly stealing more than $125,00 from the state worker’s compensation insurance fund.

John Allison , 63 of Rocklin, company president Troy Williams, 49, of Angels Camp and Nanci Morman, 68, of Somerset, the company’s controller and bookkeeper, were all charged with multiple counts of insurance fraud, the California Department of Insurance said in a news release.

Bail was set at $15,000 each for each of the individuals on Monday by Judge Douglas Phimister in El Dorado County Superior Court.

A lawyer for the three individuals, Travis Owens, said his clients are innocent.

“My clients categorically deny these allegations and remain hopeful that this tragic understanding can be resolved,” he said.

The three defendants allegedly conspired together to illegally lower the company’s worker compensation rate after the company’s rates increased in 2016, the Department of Insurance said.

Allison, listed as the owner on the company’s website, is accused of forming a second company, Allison Development. Archer Building Co’s payroll was transferred to the new company from 2016 to 2020 in order to avoid paying accurate insurance premiums, the news release says.

“In 2020, Allison Development’s workers’ compensation policy was canceled and the employees transferred back to Archer Building Company,” the release says.

The investigation, the release says, found that Archer Building Co. and Allison Development attempted to defraud the state fund of $127,795 because of the lower premium payments.

Morman was the bookkeeper and point person for insurance audits for both companies, the release said.

The next court hearing in the case is scheduled for May 26. The El Dorado County District Attorney’s Office is the prosecutor in the case

Archer Building, a construction manager and construction company, stresses its ethics on its website.

“Beginning with the simple yet extremely important philosophy as ‘The Golden Rule’ and coupling that with honesty, we strive to treat our clients, customers and our employees, the same way we like to be treated,” the company said.