Construction Businessmen Indicted

Two former Alameda County construction businessmen, Jay Neal Wright, 50, and his son, Jay Neal Wright II, 29, both of Phoenix, were indicted by the Alameda County Grand Jury on multiple felony counts including workers’ comp insurance fraud, corporate tax fraud, employment tax evasion, grand theft, and conspiracy.

Both suspects agreed to surrender to authorities on June 30, 2003, with bail set at $145,000 and $95,000 respectively.

Throughout the 1990s, Wright and his son headed a large residential framing company, Highland Framers, with a multi-million dollar payroll, which did business in and around Alameda and Contra Costa Counties. In 1993, the Wrights allegedly claimed to insurers and State employment tax authorities that they had divested their labor force and instead used outside subcontractors. However, an examination revealed that at least two of these subcontractors were corporations allegedly operated under the control of Highland Framers. These shell corporations were reportedly created to avoid paying the appropriate workers’ comp insurance premiums and State employment taxes.

It is estimated this alleged fraud resulted in losses of $3.5 million for various insurance companies, as well as $8 million for the Employment Development Department.

Topics Construction