California Business Owners Arraigned for Workers’ Comp Fraud

Three California business owners were arraigned for insurance fraud this week after an investigation reportedly showed they illegally conspired to lower workers’ compensation premiums.

Troy Williams, 49, of Angels Camp, Nanci Morman, 68, of Somerset, and John Allison, 63, of Rocklin, were arraigned on Monday on multiple felony counts of insurance fraud after a joint investigation with the California Department of Insurance and the El Dorado County District Attorney’s Office reportedly revealed they allegedly conspired together to illegally lower their company’s workers’ comp insurance premiums and defraud the State Compensation Insurance Fund of more than $125,000.

Williams has owned and operated a framing business called Archer Building Co. since 2001, which reported carpentry payroll between 2013 and 2016. However, in 2016 the company’s work-related claims costs increased, which would increase its worker’s comp insurance rates.

The joint investigation found that Allison, an Archer Building employee, created Allison Development. Between 2016 and 2020, Archer Building diverted its carpentry payroll to Allison Development to avoid paying accurate workers’ comp premiums. In 2020, Allison Development’s workers’ comp policy was cancelled and the employees transferred back to Archer Building.

The investigation found Archer Building and Allison Development attempted to defraud State Fund of $127,795 by not paying the correct amount of premium. Also, it was revealed that Morman was the bookkeeper and point of contact for insurance audits for both companies.

On March 10, Williams and Morman self-surrendered to the El Dorado County Jail. Allison self-surrendered on March 14. They are scheduled to return to court on May 26. The El Dorado County District Attorney’s Office is prosecuting the case.

Topics California Fraud Workers' Compensation