Gainesville man pleads no contest in multi-million-dollar California insurance fraud case [The Times, Gainesville, Ga.] - Insurance News | InsuranceNewsNet

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March 21, 2023 Newswires
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Gainesville man pleads no contest in multi-million-dollar California insurance fraud case [The Times, Gainesville, Ga.]

Times, The (Gainesville, GA)

Mar. 20—A Gainesville man pleaded no contest in a $54 million insurance fraud case in California over workers' compensation services for agricultural workers and other blue-collar jobs, according to court officials.

Beau Eric Wilson, 38, and Wesley Owens, 54, of Suwanee, entered their no contest pleas March 2 in Los Angeles Superior Court, meaning neither man is admitting guilt.

Though sentencing is set for September, the proposed terms do not include prison time unless they violate the terms of the agreement.

According to Los Angeles Superior Court documents, Owens created Bison Workforce Solutions in March 2015 in Georgia and registered it as a California corporation in June 2015. Wilson worked as a professional employer organization broker. A broker helps employers in finding outsourcing options for their human resources needs.

"The investigation found the company failed to pay approximately $29 million in premium as a result of its fraud and bilked its (professional employer organization) customers out of approximately $25.5 million in fees they thought were paying for workers' compensation insurance coverage," according to the California Department of Insurance.

The California insurance office said Owens would obtain workers' compensation insurance for Bison Workforce Solutions and then create fraudulent certificates of insurance.

The insurance carriers were under the impression that the policy was for a white-collar firm, while the businesses were actually "agricultural workers, roofers, limo drivers and a wide variety of other employees," according to the insurance office.

The Georgia Office of Insurance and Safety Fire Commissioner told The Times in 2019 that the certificates of insurance were altered to make it look like there was adequate coverage for the businesses.

"The investigation also found Wilson, who was aware of the fraud, recruited customers for Bison and received commissions for each client that used the fraudulent services," according to the California insurance office. "Bison became unable to obtain workers' compensation because of its persistent fraud so the company entered into a business relationship with another firm that already had a workers' compensation insurance policy. Owens and his co-conspirators began using that firm's documents to continue generating fake insurance certificates. In order to conceal the fact that its policy was being misused to insure (professional employer organization) customers, Bison began paying out claims itself."

The insurance offices in Georgia and California said claims eventually went unpaid and left workers uncovered without recourse if they suffered an injury at work, which "ultimately fell back on the health care systems of (Georgia) and California."

Wilson and Owens were originally arrested in June 2019.

Wilson's attorney, Brian Gurwitz, said the no contest plea was in his client's best interest given that there was no risk of jail time.

"That being said, I think it's important to recognize that there was not the type of close connection between him and Owens that some think," Gurwitz said.

Gurwitz said the two men had a business relationship, as Wilson sent clients to Owens.

According to the Los Angeles County District Attorney's Office, Owens pleaded no contest to four counts of insurance fraud and one count of conspiracy to commit insurance fraud.

Wilson pleaded no contest to one count each of insurance fraud and conspiracy to commit insurance fraud.

Sentencing was delayed until Sept. 13.

According to the district attorney's office, Owens must pay $25,000 in restitution before Sept. 13 and another $75,000 before March 4, 2024. If the payments are made, Owens will be on 10 years probation with credit for 80 days time served.

Owens will also have to complete 60 days of community service.

Wilson must pay $250,000 in restitution before Sept. 13 and will sell five pieces of property, using the proceeds to pay another $750,000 before March 4, 2024.

Gurwitz said the later payment could be more or less depending on how much the properties sell for.

Similarly, Wilson will have 10 years of probation if the restitution payments are made on time and 60 days of community service.

Both men also agreed to another $14.15 million in restitution during the 10 years of probation, according to the insurance office.

If they violate the terms of the probation, they will be sent to California State Prison for five years, according to the insurance office.

Owens' attorney, Jennifer MacDonald, did not return a request for comment.

___

(c)2023 The Times, Gainesville, Ga.

Visit The Times, Gainesville, Ga. at www.gainesvilletimes.com

Distributed by Tribune Content Agency, LLC.

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