Anatomy of a Workers’ Compensation Premium Fraud Case

Three California business owners were arraigned for insurance fraud this month after an investigation reportedly showed that they illegally conspired to lower workers’ compensation premiums.

Troy Williams, 49, of Angels Camp, Nanci Morman, 68, of Somerset, and John Allison, 63, of Rocklin, were arraigned on Monday, May 23, 2022, on multiple felony counts of insurance fraud.  A joint investigation with the California Department of Insurance and the El Dorado County District Attorney’s Office, reportedly revealed that the three allegedly conspired together to illegally lower their companys’ workers’ comp insurance premiums and to defraud the State Compensation Insurance Fund of more than $125,000.


Williams has owned and operated a framing business called Archer Building Co. since 2001, which reported carpentry payroll between 2013 and 2016. However, in 2016 the company’s work-related claims costs increased, which increased its workers’ comp insurance rates.

The joint investigation found that Allison, an Archer Building employee, created Allison Development. Between 2016 and 2020, Archer Building diverted its carpentry payroll to Allison Development to avoid paying accurate workers’ comp premiums. In 2020, Allison Development’s workers’ comp policy was cancelled and the employees transferred back to Archer Building.

The investigation found Archer Building and Allison Development attempted to defraud the State Fund of $127,795 by not paying the correct amount of premium. Also, it was revealed that Nanci Morman was the bookkeeper and point of contact for insurance audits for both companies.

The three defendants are scheduled to return to court on May 26. The El Dorado County District Attorney’s Office is prosecuting the case. 

Cal-SARA would like to acknowledge the excellent work of the joint investigative teams from El Dorado County District Attorney’s office and the California Department of Insurance.  

The moral of this story, and other cases like it, is that there are many legitimate ways for businesses to compete in the marketplace; fraud and deception are not among them.  These three defendants made the wrong choices and now face felony convictions.