The fraud was discovered through a State Fund audit of Presley's business records after one of his employees reported a workplace injury. Presley, 55, is the owner of JSP Construction Co., which provides ceiling installation.
The audit uncovered records in which Presley reported he did not have any employees or payroll during the year audited. Additional audits found that Presley underreported payroll over a 4-year period, according to the agency.
"Fraud siphons millions of dollars each year from honest stakeholders," said Donna Gallagher, who manages State Fund's Fraud Investigation Program (FIP). "Employers who engage in premium fraud gain an illegal advantage. We will continue to work with law enforcement to fight workers' compensation fraud."
State Fund's FIP addresses all aspects of workers' compensation insurance fraud, including employee, employer, medical and legal. In the last decade, State Fund's FIP has produced hundreds of arrests and convictions in a wide range of workers' compensation cases.
Established by the California Legislature in 1914, State Compensation Insurance Fund is a self-supporting, nonprofit, fairly competitive public enterprise that provides workers' compensation insurance coverage at cost to California employers.