CCC Sr. Investigator Frank Velazquez helped bring Harry Minassian to justice for denying his employee's workers compensation insurance. The denial of workers compensation insurance led to a variety of series health issues for former Pacific Construction employees, including amputation. Mr. Velazquez worked with State Fund Insurance company to provide the evidence that led to the arrest of Harry Minassian. The case was prosecuted successfully by the Los Angeles County District Attorney's Office.
The CCC and the Labor Commissioner's Office helped provide evidence to the Orange County District Attorney's Office that led to the arraignment of five defendants for committing over $635,000 in tax and insurance fraud and for failing to pay employees prevailing wage on public works contracts.
The CCC provided evidence to the Orange County District Attorney's Office that ultimately led to three defendants being charged with felonies.
All three defendants were charged with felony counts of taking and receiving a portion of a worker’s wage on public works and one felony count of recording a false forged instrument. In addition, one of the defendants was charged with 29 felony counts of willful failure to pay tax, two felony counts of misrepresenting facts to State Compensation Insurance Fund, and attempting to take and receive a portion of a worker’s wage on a public works project.
An investigation stemmed by the Center for Contract Compliance triggers a multimillion dollar workers’ comp and payroll fraud case.
CCC Sr. Investigator Frank Velazquez provided evidence to the Orange County District Attorney's office that led to an indictment of a father and son for embezzling over $300,000 from their employee's wages.
CCC Investigators opened a case on Malcon Civils, Inc. after receiving complaints from the contractor's employees alleging cash kickbacks on a Irvine elementary school project, a violation of Labor Code §1778.
The company owner and his foreman were arraigned for defrauding employees out of $330,000 in wages and keeping the money for themselves on two public works
Contractors State License Board
CCC Investigators filed six complaints alleging Falcon Builders submitted bids for projects that fell outside the scope of a class “B” license, or failed to properly subcontract portions of the work to specialty licensed subcontractors in accordance with state law.
The California State License Board (CSLB) recently revoked two licenses held by Falcon Builders Inc., Ronald Auger, and John Mercer for five years.
If either party applies for a license after the five year period, the CSLB will require payment of $12,578.97 in investigative fees, and proof of payment to prior unpaid subcontractors or suppliers in the amount of $92,576.81.
DIR Coverage Determinations
In response to a request by the CCC, the Department of Industrial Relations issued a coverage determination finding a sidewalk project by the City of San Marcos is a public work under Labor Code 1720.
In response to a request by the CCC, the Department of Industrial Relations issued a coverage determination finding a golf course pedestrian trial in Chula Vista is a public work under Labor Code 1720.
In response to a request by the CCC, the Department of Industrial Relations issued a public works coverage determination finding the Palm Springs Downtown Improvements, Kimpton Hotel, and Virgin Hotel are a public work under Labor Code 1720.
The CCC was asked to submit an opinion as an interested party regarding a request for determination for a tree removal project as a result of an emergency wildfire. The Department of Industrial Relations issued a coverage determination finding the project was a public work subject to California's prevailing wage law.
Fighting Fraud So Contractors Can Bid Fairly