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California employers sentenced for workers comp violations


Two California employers received prison sentences for workers compensation violations, Monterey County, California District Attorney Dean Flippo said in separate statements Tuesday.

Salinas, California, restaurant owner Chang Tai Lin pleaded guilty to two counts of making a material misrepresentation in order to obtain lower workers comp premiums along with one count of tax evasion. Between 2010 and 2016, Mr. Lin underreported the number of employees working at his restaurant, AA Buffet, and falsely reported payroll wages because he paid many employees in cash, the statement said.

Mr. Lin paid restitution of $42,778.81 to Lakeland, Florida-based workers comp insurer EIG Services Inc. and San Mateo, California-based workers comp insurance broker Sequoia Consulting Group at the time of the plea. He received a sentence of five years of felony probation, as well as 90 days in county jail and a fine of more than $10,000, the statement said.

Fernando Sanchez, a licensed contractor in Carmel, California, pleaded guilty to one misdemeanor count of failure to secure workers comp insurance, an offense he had been convicted of previously, the statement said. Mr. Sanchez had filed exempt status with the California Contractors State License Board, saying he was not subject to rules requiring him to carry workers comp insurance because he did not have any employees, according to the district attorney.

In January 2017, a compliance officer with the board observed an employee present on a job site where Mr. Sanchez had been hired to provide tree trimming services. He was placed on probation for three years and ordered to serve 40 days in county jail and pay a $10,000 fine to the California Uninsured Employers Fund, the statement said. 



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