Trucking Company Owners Charged with Insurance Fraud
Hardip Singh, 44, and Amandeep Kaur, 36, the owners of a trucking company, were charged this week with several counts of insurance fraud. They are accused of misclassifying employees as independent contractors to underreport payroll by over $1.4 million, leading to a $234,000 loss for their insurer and a $220,000 loss for the Employment Development Department (EDD).
Business Operations
Operating under the name Trust Transport Inc., Singh and Kaur ran a long-haul trucking business from their home in Sacramento, along with a separate trucking yard in West Sacramento. Between February 25, 2014, and October 20, 2016, they maintained workers’ compensation insurance with State Compensation Insurance Fund and reported a payroll of $105,811.
Audit Findings
The State Compensation Insurance Fund (SCIF) conducted audits that verified payroll figures and uncovered that some workers had been misclassified as independent contractors, receiving 1099 forms.
Investigative Actions
Detectives from the California Department of Insurance executed a search warrant at Trust Transport’s bank to obtain financial records. They uncovered approximately $1.4 million in payroll that had not been reported from these misclassified workers. The inquiry indicated that Singh and Kaur had manipulated their employee classifications to evade higher workers’ compensation insurance premiums.
Financial Impact
As a result of their actions, SCIF reported a loss of $234,541 in underpaid premiums, while the EDD estimated a loss of $220,000 due to the fraudulent activities.
Court Proceedings
Singh and Kaur voluntarily surrendered to the Sacramento County Superior Court. The Sacramento County District Attorney’s Office is currently handling the prosecution of the case.
Related Topics
This case highlights significant issues surrounding fraud within the trucking industry and the broader implications for workers’ compensation in California.
