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Owner of Bay Area transportation company sentenced to 10 years in prison for work comp fraud

In workers' compensation defense news, the owner of a prominent Bay Area transportation company was recently sentenced to 10 years in prison on a variety of charges, including tax evasion and workers' compensation insurance fraud.

Gerald Quint, 54, was the owner of New Century Transportation Inc. - a transportation company that contracted with both private corporations and the Santa Clara Valley Transportation Authority to provide shuttle services - from 1996 through 2009.

According to the Santa Clara County District Attorney's Office, Quint engaged in a systematic pattern of work comp fraud and tax evasion during these 13 years of ownership.

Specifically, they charged him with a variety of criminal offenses after making the following discoveries:

  • An investigation by the Santa Clara County District Attorney's Office revealed that Quint did not report the proper payroll in order "to fraudulently and substantially reduce" his company's work comp premiums by over $1.3 million.
  • An investigation by the state Franchise Tax Board revealed that Quint's company failed to report almost $11 million in income between 2002 and 2007, resulting in personal/corporate tax evasion of over $500,000.
  • An investigation by the California Employment Development Department revealed that Quint's company failed to report over $5 million in payroll between 2004 and 2008, resulting in payroll tax evasion of over $925,000.

Quint eventually pleaded guilty back in the summer of 2009 to work comp insurance premium fraud, income and corporate tax evasion, and unemployment insurance tax evasion charges.

This past Monday, he was sentenced to 10 years in prison and ordered by the judge to pay $2.7 million in restitution.

If you are an uninsured California employer facing a real problem - prospective fine, prosecution, an employee injury or litigation - there are steps that can be taken to minimize the consequences. In these difficult circumstances, you may want to consider consulting with an experienced legal professional.

This post was provided for informational purposes only and is not to be construed as legal advice.

Stay tuned for further developments in the area of workers' compensation defense ...

Related Resources:

Shuttle service owner sentenced on workers' comp fraud (The San Jose Business Journal)

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