California Construction Company Owner Pleads Guilty to Workers’ Comp Fraud

The owner of a Sacramento, Calif. construction company has pleaded guilty to tax evasion and workers’ comp insurance fraud.

The Sacramento Bee reported that 47-year-old William Alan Huffman entered his plea last week after being arrested in January.

The Sacramento County District Attorney’s Office says Huffman falsely reported to his workers’ compensation insurance carriers that he had no or very few employees at Capital City Construction Co. During this time he paid his employees in cash and avoided paying the California Employment Development Department and insurance premiums.

Under the terms of his plea agreement, Huffman will be ordered to serve one year in county jail, be on probation for five years, and to pay more than $303,000 in restitution.

He is scheduled to be sentenced March 24.