The owners of a building framing company in Riverside pleaded innocent to charges of defrauding the state and three insurance companies out of $3.5 million. Thomas Parsons and his wife Michelle, both residents of Colton, were charged with 19 counts of insurance fraud, tax evasion and grand theft. Parsons’ brother James, a resident of Yucaipa, was charged with six counts of insurance fraud and grand theft.
Prosecutors from the San Diego County District Attorney’s Office charge that Tom Parsons Framing and Parsons Framing Inc. obtained lower rates for workers’ comp insurance by claiming that journeymen employees were actually experienced workers, giving the company an unfair advantage in bidding on contracts.
The defendants are also charged with underreporting wages and failing to pay state income taxes in 1997 and 1998.
Trial is set for Dec. 6. If convicted, the owners could receive a sentence of between four and 10 years in prison.
The CDI Fraud Division estimates the total loss to the insurance industry as a result of the fraudulent activities at more than $2.4 million. Losses incurred by the State Franchise Tax Board are estimated at more than $1.1 million.
Topics Fraud
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