“An April 23 press release issued by Insurance Commissioner Dave Jones announced the owners of Hallmark Roofing of Belmont, were arrested on 29 felony accounts for workers’ compensation and unemployment insurance fraud, including failure to report employee wages. After investigations and a forensic audit by the California Department of Insurance, owners John and Camille Applegate were found to have inaccurately reported their employees’ wages, thereby failing to pay nearly $630,000 in workers’ compensation insurance premiums over a five-year period. The Applegates’ also neglected to report employees’ wages and pay taxes on those wages to the Employment Development Department (EDD) between January 1, 2010, and January 1, 2012, even though they deducted the wages from their employees. If convicted, John and Camille Applegate each could face up to five years in state prison and payments in excess of $1 million.
“The pursuit and arrest of Hallmark Roofing’s owners reinforces the goal of ethical contractors to eliminate the underground economy and level the playing field.”
Click here to access the full news article
