Framing Contractor Ordered to Pay Calif. SCIF $291,444

San Diego County Superior Count Judge David Danielsen has ordered framing contractor Christopher Nicol to pay $291,440 in restitution to California’s State Compensation Insurance Fund. Nicol, 38, owner of BC Framing, pleaded guilty to one count of Insurance Code Section 11880 (a) – workers’ compensation insurance premium fraud. Judge Danielsen also imposed a sentence of 365 days in the custody of the sheriff but stayed that custody pending Nicol’s successful completion of probation.

BC Framing specializes in residential and commercial framing projects in East San Diego County.

State Fund provided workers’ compensation insurance coverage to BC Framing from November 2001 through June 2005. According to SCIF, the fraud was first reported when a State Fund auditor received a tip by one of Nicol’s business associates regarding the company’s payroll reporting practices. SCIF then conducted an audit of BC Framing’s workers’ compensation records, which uncovered hundreds of thousands of dollars in underreported payroll. State Fund’s Special Investigation Unit submitted a report of its suspected fraud case to the San Diego County District Attorney’s Office and the Department of Insurance (DOI) for its review.

State Fund assisted the San Diego County District Attorney’s Office, including prosecutor David D. Bagheri, in its investigation, which included a detailed audit of Nicol’s workers’ compensation records.

Source: SCIF