Individuals from two Bay Area construction companies were arraigned on charges of conspiring to misclassify workers to avoid paying workers’ compensation
insurance, payroll taxes, and insurance premiums.
Complaints were filed with the court on March 8, 2023.
District Attorney Diana Becton said that “Prosecuting insurance fraud is about protecting workers, holding those responsible accountable, and stopping unlawful business schemes.”
The first complaint against 57-year-old Candido Silva, 42-year-old Itamar De Morais Junior, and
42-year-old Irma Ruiz-Alarcon of Atlas Pavers of Concord details how they unlawfully paid
over $12 million to its unlicensed and misclassified construction crews from 2016 through 2019.
The complaint also alleges that the defendants discussed a desire to avoid insurance with the
State Compensation Insurance Fund (“SCIF”) because they knew that SCIF would require an
audit of the company’s books.
The second complaint charged 62-year-old Christopher Ray Vieira and 60-year-old Gilbert
Roland Guiotti with operating Centrox Construction of San Bruno as a shell company to route unlawful payments to unlicensed subcontractors for Atlas Pavers and others.
Both men have been charged with the unlawful use of their CSLB license to aid and abet payments from companies advertising to consumers as licensed contractors to their unlicensed and misclassified subcontractor labor crews.
Moreover, the complaint alleges Centrox received a percentage for routing millions of dollars in payroll funds to unlicensed and misclassified subcontractor crews — while fraudulently underreporting the worker’s total compensation amounts to SCIF.
The investigation into Atlas Pavers and Centrox Construction was conducted by the Contra
Costa District Attorney’s Office, Contractors’ State Licensing Board, and the California
Department of Insurance. California law requires contractors to be licensed in their specialized
7 comments
Good to see there is some accountability. Aside from that, but somewhat related, have you all noted the increase in trucks towing those black trailers lately. Junk haulers heading for the dump? Or wherever they they decide to unload the trailer?
Used 1-800-got-junk once “just once” to remove construction debris. Got quoted about $600, when the bill came in it was $2800 citing overweight dump fees “in their contract so you may want to look”
There is a reason they have so many nice shiny trucks.
During a remodel of my house I actually did all of the dump runs for my contractor. It was cheaper if I did them using my truck and he gave me credits. The credits I got were enough pay for the new roof on the house. I spent a few thousand in dump fees, so it worked out well for me. I own a diesel truck that could deal with the heavier loads easily and have a friend with a dump trailer that made larger loads easier.
ANON
Just did a kitchen remodel and my contractor charge $35 for large dump load that included things I had him take from my garage since he had my cabinets, counters, dishwasher old lights, ceiling fan etc. Of course a standard pickup bed size load at our dump is $20 unless you have the annual one free dump coupon. But then again I pay $60 a quarter for garbage service and not the $30ish a month I paid in Concord
.
They probably hire alot of illegals. That, in turn, results in “undocumented workers” and “undocumentation”.
.
F.U. Becton.
.
This is just a fraction of the problem. How about stopping the hiring of illegals.
Use the Contractors’ State Licensing Board website to check a contractor’s credentials and insurance at https://www2.cslb.ca.gov/Consumer.aspx It is amazing how many contractors do not carry workman’s’ comp because they “certify that have no full time employees.:
Comments are closed.