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Two California Contractors Sentenced for Workers Comp Insurance Fraud

Feb. 22, 2000

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.

EHS Today Staff

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.

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeek, EHS Today, Material Handling & Logistics, Logistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor: Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.