Calif. State Fund to Collect $66,355 for Workers’ Comp Fraud

California Superior Court Judge Christopher G. Wilson has ordered the owner of three Humboldt County bars to pay State Compensation Insurance Fund $66,355.

Salvatore Constanzo of Eureka, Calif., was ordered to pay State Fund in restitution after his conviction for workers’ compensation insurance fraud, in which he underreported payroll, and misclassified and failed to report wages that were paid in cash.

State Fund, which insured Sidelines Sports, Sal’s OFF Broadway and Myrtlewood Lounge since 1992, uncovered the fraud during a claims review. State Fund assisted the Humboldt County District Attorney’s Office and the California Department of Insurance with an investigation of Constanzo’s policy. The investigation resulted in a conviction.