Cal-SARA Makes Fraud Referral on Employer Outsourcing Inc (EOI) to Expose Possible Workers’ Compensation Premium Fraud

July 28, 2022, SAN FRANCISCO – The California Staffing Agency Reform Association

(Cal-SARA), acting on a report from a member, issued a fraud referral to the California Department of Insurance and Los Angeles County District Attorney’s office and filed complaints with WCIRB and the California Department of Labor.  

The report identified a split risk scheme in which a staffing agency owner had two separate businesses with almost identical names, each with a different insurance policy. This practice is common in a “claims dumping scheme” where the payroll is split between the two businesses, but all of the claims are reported to one insurer.

Owner of Staffing Agencies Charged in Connection With Scheme To Evade Insurance Premiums

WORCESTER, July 1, 2022 – 

A Worcester resident who operated two temporary staffing agencies has been charged in connection with a scheme to evade her insurance companies of more than $49,000 in premiums, Attorney General Maura Healey announced today. 

Solynna Taing, age 56, was arraigned Thursday in Worcester Superior Court on the charges of Workers’ Compensation Insurance Fraud (4 counts) and Larceny Over $250 (3 counts). She pleaded not guilty to the charges and Judge Daniel M. Wrenn released her on her own recognizance.

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.