Sacramento Flooring business owners indicted in $ 3.8 million workers’ compensation fraud scheme, California Department of Insurance reports
May 17, 2021 – SACRAMENTO, Calif .– Ryan Black, 45, formerly of Fair Oaks, and Curtis Davis, 53, of Penryn, have both been charged with three counts of workers’ compensation fraud after allegedly underreporting payroll and employees by over $ 30 million to illegally save on workers’ compensation insurance premiums, resulting in a loss of around $ 3,840,956 for three insurance companies .
Black and Davis owned Apex Industry Solutions Inc. (Apex), a flooring installation company located in Sacramento. In October 2017, Apex’s insurer discovered at the time that two people working for Apex were performing unlicensed ground installations and receiving 1,099 forms as independent contractors instead of W-2 forms as employees. However, Black identified the two workers, along with two other workers, as Apex employees.
The California Department of Insurance opened an investigation after receiving a report of suspected fraud from Apex’s insurance company in April 2018. The investigation revealed that Black had a large number of employees at the facility. flooring and had reported to the carrier minimal or no payroll for installing flooring.
The investigation also revealed that Black and Davis had conspired to underreport payrolls to two other insurance companies who had been their former carriers. Over a five-year period, from 2013 to 2018, underreported payrolls totaled about $ 30 million, resulting in a loss of about $ 3,840,956 for three insurance companies.
Black was arraigned on Wednesday, May 12, 2021 and Davis was arraigned on May 5, 2021. This case is currently being pursued by the Sacramento District Attorney’s Office.
- Ryan Black currently resides in Cleveland, Tennessee.
The California Department of Insurance, established in 1868, is California’s largest consumer protection agency. Insurers collect $ 340 billion in premiums each year in California. Since 2011, the California Department of Insurance has received more than 1,000,000 calls from consumers and has helped collect more than $ 469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the consumer hotline at 800-927-4357. TTY machine, please dial 800-482-4833.
Source: CA. Insurance Department