Orange_County_District_Attorneys_Office_Public_Works_(2).pdf

Orange County

District Attorney’s Office

Public Works Unit

The District Attorney’s Office created a new Public Works Unit within our

Workers Compensation Insurance Unit in June 2011.

This unit was created to ensure that contractors bidding on Public Works projects are on an even playing field and also to protect the wages and benefits of employees working on these projects. The unit focusses on investigating and prosecuting contractors and their agents who underpay employees prevailing wages as well as commit fraud in the workers’ compensation arena.

Work with Department of Industrial Relations (DIR), Employment

Development Department (EDD),California Department of Insurance

(CDI), and Contractor State License Board (CSLB).

OCDA PUBLIC WORKS UNIT

Labor Code Section 1776(f)(1) Notwithstanding any other provision of law, agencies that are included in the Joint Enforcement Strike Force on the

Underground Economy established

Unemployment Insurance Code and pursuant other to Section 329 of the law enforcement agencies investigating violations of law shall, upon request, be provided nonredacted copies of certified payroll records.

Any copies of records or certified payroll made available for inspection and furnished upon request to the public by an agency included in the Joint

Enforcement Strike Force on the Underground Economy or to a law enforcement agency investigating a violation of law shall be marked or redacted to prevent disclosure of an individual's name, address, and social security number.(2) An employer shall not be liable for damages in a civil action for any reasonable act or omission taken in good faith in compliance with this subdivision.

CERTIFIED PAYROLL REQUEST

1776. (a) Each contractor and subcontractor shall keep accurate payroll records, showing the name, address, social security number, work classification, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by him or her in connection with the public work. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:

(1) The information contained in the payroll record is true and correct.

(2) The employer has complied with the requirements of Sections 1771, 1811, and 1815 for any work performed by his or her employees on the public works project.

LABOR CODE 1776

(c) The certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement or shall contain the same information as the forms provided by the division. The payroll records may consist of printouts of payroll data that are maintained as computer records, if the printouts contain the same information as the forms provided by the division and the printouts are verified in the manner specified in subdivision (a).

LABOR CODE 1776

Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating the information contained in the payroll record is true and correct.

CERTIFIED PAYROLL RECORD

Form can be located at: https://www.dir.ca.gov/dlse/Forms/PW/DLSEFormA-1-131.pdf

Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating the information contained in the payroll record is true and correct.

PENALTY OF PERJURY

Form can be located at: https://www.dir.ca.gov/dlse/Forms/PW/DLSEFormA-1-131.pdf

INCORRECT

FORM

COMMON CHARGING SECTIONS

Labor Code 1778 – Taking and receiving portion of worker’s wage on Public Works

Worker’s Compensation

Penal Code 115(a) – Record false and forged Instrument

Insurance Code 11760(a) – Misrepresent Facts to

Insurance Company

Insurance Code 11880(a) – Fraud against State Compensation Insurance Fund

Unemployment Insurance Code 2117.5 – Failure to properly report payroll taxes

Unemployment Insurance Code 2118.5 – Willful failure to pay tax

TAKING OR RECEIVING PORTION

OF WAGES OF WORKMAN

Labor Code 1778

Every person, who individually or as a representative of an awarding or public body or officer, or as a contractor or subcontractor doing public work, or agent or officer thereof, who takes, receives or conspires with another to take or receive, for his own use or the use of any other person any portion of the wages of any workman or working subcontractor, in connection with services rendered upon any public work is guilty of a felony.

• The defendant was a contractor, subcontractor, or with awarding body, doing public work;

• The defendant had a worker to render service upon a public works project;

• The worker should have been paid full prevailing wage in connection with the public work labor;

• The defendant took a portion of the worker's wages

PREMIUM FRAUD

Labor Code 11760(a)

Commission of premium fraud constitutes a Felony crime under the provisions of

Insurance Code §11760(a) if the insurance company defrauded is a private insurance company .

1. A person made, or caused to be made, any knowingly false or fraudulent statement

2. The statement was made either orally or in writing;

3. The statement contained a fact material to the determination of the premium, the rate, or cost of the insurance

4. The person made that statement for the purpose of reducing the premium, reducing the rate, or reducing the cost of insurance.

Defendants Filed on: 42

Search Warrants Served: 80+

Grand Jury Indictments: 4

ACTIVITY SINCE JUNE 2011

CONTRACTOR STATUS

General Contractor Completed – Received 2 years prison

Subcontractor / Fire Sprinkler Completed - Received 2 years prison

Subcontractor / HVAC Convicted 37 counts. Sentence pending

General Contractor Defendant 1 year jail and probation. Co-defendant 7 years 4 months

Subcontractor / Electrician (Bookkeeper & Office Manager)

Completed – (2) defendants received 6 months jail time and 3 years probation

Landscaper 90 days by Court with full restitution. % years Formal Probation

General Contractor (Office worker, superintendent and owner)

Court Case pending- 6 co-defendants

General Contractor (Superintendent and subcontractor)

Court Case pending- 3 co Defendants 1 Defendant pending sentencing PG 29 Counts

Subcontractor/Bookkeeper 16 months, 3 years mandatory supervision/ 30 days jail probation

CONTACT INFORMATION

DDA Raymund Diaz

Raymund.Diaz@ocdapa.org

(714) 402-0251

Investigator Eddie Gomez

Eddie.Gomez@ocdapa.org

(714) 329-3070

Insurance Fraud Hotline

Website:

(714) 648-3650 https://orangecountyda.org/workers-compensation-insurance-fraud/ mailto:Raymund.Diaz@ocdapa.org

QUESTIONS?