SAN DIEGO and SAN FRANCISCO, Aug. 29 /PRNewswire/ -- San Diego Superior
Court Judge David Danielsen ordered the owner of a San Diego area
construction company to pay $475,563 in restitution to the State
Compensation Insurance Fund as part of his sentence for committing workers'
compensation insurance premium fraud. Damian L. Seiler, 57, a licensed
general contractor and owner of the Pacific Home Company, was also given
jail time of 365 days and sentenced to five years probation.
Seiler was also ordered to pay the State Employment Development
Department $232,768 in restitution. State Fund also received an additional
$951 to pay for its investigative costs. In all, Seiler was ordered to pay
total restitution costs of $709,283.
Seiler established his company in Solana Beach in 2000 and specialized
in condo conversions. The fraud was uncovered after Seiler filed a workers'
compensation claim for an employee, even though he had never reported any
wages for the employee to State Fund. State Fund performed an audit of
Seiler's company and found irregularities. State Fund referred the
suspected fraud case to the San Diego County District Attorney's Office in
August 2005, and the DA's Office subsequently served a search warrant on
Pacific Home Company. As a result of the audit and the documents obtained
from the search, it was determined that Seiler had underreported wages of
his employees by more than $1.1 million in order to receive a lower
"State Fund will continue to commit significant resources to help the
San Diego County District Attorney's Office and their counterparts
statewide battle workers' compensation fraud," said Donna Gallagher, who
manages State Fund's Fraud Investigation Program (FIP). "We applaud the San
Diego District Attorney's Office's commitment to investigating and
prosecuting workers' compensation fraud so vigorously."
State Fund's Fraud Investigation Program (FIP) addresses all aspects of
workers' compensation insurance fraud, including employee, employer,
medical and legal. In the last decade, State Fund's FIP has produced
hundreds of arrests and convictions in a wide range of workers'
compensation cases, including some considered milestones in California's
fight against fraud.
EDITOR'S NOTE: Established by the California Legislature in 1914, State
Compensation Insurance Fund is a nonprofit, and wholly self-supporting
public enterprise carrier that provides workers' compensation coverage at
cost to all California employers. For more information, please visit
Vicente Hernandez - State Fund Jim Zelinski (For State Fund)
415/565-1683 415/420-6050 or 925/242-0918
SOURCE State Compensation Insurance Fund