Judy Hein, 71, of Oxnard, Calif., Was charged with five insurance fraud crimes after allegedly falling below the payroll for her Simi Valley umbrella business by more than $ 4 million, resulting in a loss of more than $ 2 million Dollars for the State Compensation Insurance Fund.
The California Department of Insurance received a referral from the State Fund on December 19, 2018 alleging that Hein’s company, Cal Roofing Inc., had not reported payroll enough to qualify for a reduced rate for employee comp insurance receive.
An investigation reportedly found internet research which found the number of roofing projects and business revenue inconsistent with the number of employees reported by Cal Roofing or the estimated annual premium. Large discrepancies were found in comparing the wage information from the Employment Development Department for Cal Roofing with the wage information in the relevant government fund policy reviews.
The investigation revealed that Hein was responsible for filing the fraudulent pay slips with the state fund. She also signed EDD documents showing that the payroll was not adequately reported to the State Fund and that she correctly reported to EDD.
Audit findings and payroll reports filed with the State Fund show a payroll of $ 831,788 from 2013 to 2018. The payroll reports filed with EDD and Bank Records allegedly show a payroll of $ 4,948,114 for the same insurance periods. Hein allegedly dropped $ 4,116,326 on Cal Roofing’s payroll to get employee compensation at a discounted rate. The alleged fraud resulted in an estimated loss of $ 2,171,330 to the SWF in unpaid insurance premiums.
Hein was indicted in the Ventura Superior Court on November 17th. The case is being prosecuted by the Ventura District Prosecutor.
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