The deceased employee had been classified as a salesperson at the time of their death. However, the deceased actually had a 15-year career driving trucks for the company. At the time of the death, insuring a salesperson cost $1 per $100 in payroll, while insuring a truck driver cost $20 per $100. (Credit: Jonathan Weiss/JetCity Image/Adobe Stock)
TKJ’s insurer felt something wasn’t right after learning about the employee being found dead and began looking into company owner Heigo Kubar’s business practices.
Initially, the deceased employee had been classified as a salesperson, according to the insurance carrier’s investigation. However, 25 days after the death, TKJ amended the employee’s job classification to truck driver.
The Fresno County District Attorney’s Office then became involved and discovered through a separate investigation that the employee had actually been a truck driver for TKJ for the past 15 years. At the time of the death, it cost $1 for every $100 in payroll to insure a salesperson. The cost to insure a truck driver was $20 for every $100.
Further, TKJ reported $875,591 in payroll between Dec. 1, 2018-Dec. 1, 2021. However, the California Department of Insurance found that the company’s actual payroll during the period was $3.2 million. By underreporting payroll, Kubar reduced the company’s workers’ compensation premium by $480,093.
Kubar is scheduled to appear in court on Aug. 14, 2024.
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