Two California Contractors Sentenced for Workers Comp Insurance Fraud

Los Angeles County District Attorney and State Fund announced what may be the longest prison sentences ever in California for felony workers' compensation insurance premium fraud.

An investigation aided by State Compensation Insurance Fund has ended in what the Los Angeles County District Attorney's office says is the longest prison sentences ever for worker' compensation insurance premium fraud in California.

The owners of Los Angeles-based Jaguar Rehab and Investment Corp., Howard Ferguson Sr., 61, and Steven Lord Winn, 40, were sentenced to 8 years and 6 years in state prison by the Los Angeles County Superior Court.

The pair pleaded guilty to diverting Los Angeles County Community Redevelopment Agency funds for personal uses, and failing to pay both prevailing wages and proper premiums for workers' compensation and unemployment insurance.

Investigators found that Jaguar's owners operated under false names and used a false contractors license after receiving numerous County of Los Angeles contracts.

In addition, the company also falsified payroll data to illegally lower the company's premiums for workers' compensation and State unemployment/disability insurance.

"This case typifies our ongoing battle to ensure that honest business owners are not placed at a competitive disadvantage by those businesses that engage in workers' compensation insurance fraud," said Los Angeles County Deputy District Attorney Barry Gale, who prosecuted the case.

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