Fresno-area construction company co-owner bilked workers’ comp for nearly $1M, state accuses
The co-owner of a Fresno-area construction company is facing state charges that she underrported her employee payroll by millions of dollars to avoid paying higher insurance premiums.
Carolyn Plaza, 41, co-owner of Absolute Urethane, Inc., in Easton, voluntarily surrendered herself on Thursday after a warrant for her arrest was issued. She has been charged with six felony counts of insurance fraud.
The California Department of Insurance alleges in a complaint filed April 16 that Plaza underreported more than $3 million in employee payroll in order to fraudulently reduce her company’s workers’ compensation insurance premium by nearly $1 million.
Investigators allege that Plaza provided false payroll records to State Fund — California’s leading provider of workers’ compensation insurance — for multiple policy years. After comparing those payroll records to the records she reported to the Employment Development Department, investigators found she had been underreporting for five years, according to the state.
“When business owners illegally underreport payroll, they are hurting legitimate businesses who pay the price through higher insurance premiums,” said state Insurance Commissioner Ricardo Lara. “Exposing fraud is critical to protect workers and businesses, especially now during the pandemic when our small businesses and consumers are struggling more than ever.”
Plaza could not be reached for comment Thursday. The company’s website says it has been in business since 2006, providing insulation, specialty coatings, roofing, painting and waterproofing services. The company’s co-owner is Eric Plaza, Carolyn’s husband.
The Fresno County District Attorney’s office is prosecuting the case. Carolyn Plaza is scheduled to be arraigned on June 28 in Fresno County Superior Court.
Chief Deputy District Attorney Scott Hoedt said his office works closely with the Department of Insurance to prosecute all types of workers’ compensation fraud, including when a company underreports payroll.
“The District Attorney’s Office seeks to hold individuals responsible when they commit fraud to gain a competitive edge. These practices not only hurt other businesses but put the perpetrator’s employees at risk,” Hoedt said.
This story was originally published May 6, 2021 at 5:08 PM.
