This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
This Website Uses Cookies
By closing this message or continuing to use our site, you agree to our cookie policy. Learn More
This website requires certain cookies to work and uses other cookies to help you have the best experience. By visiting this website, certain cookies have already been set, which you may delete and block. By closing this message or continuing to use our site, you agree to the use of cookies. Visit our updated privacy and cookie policy to learn more.
Roofing Contractor logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Roofing Contractor logo
  • Home
  • Magazine
    • Current Issue
    • Digital Issue
    • Archives
  • Topics
    • Cool Roofing
    • Low Slope
    • Metal
    • News
    • Products
    • Product of the Month
    • Project Profiles
    • Safety
    • Steep Slope
    • Sustainability
    • Trade Shows
    • Technology
  • Exclusives
    • Best of Success
    • Contractor Profile
    • IRE Show Daily
    • Made in the USA
    • Roofing Contractor of the Year
      • Enter Roofing Contractor of the Year
    • Top 100
      • Enter the Top 100
    • Young Guns
    • Web Exclusives
    • Editor's Choice
    • State of the Industry
    • Century Club
  • Columns
    • Editor's Note
    • Measuring Up
    • Legally Speaking
    • Safety Advice
    • Technical Details
    • Guest Column
    • High-Tech Roofing
    • Sustainable Roofing
    • Marketing Makeover
    • Leadership Selling
  • Blog
    • Damato of the Day
  • Multimedia
    • Roofing Quiz
    • Videos
    • IRE 2019 Videos
    • Webinars
    • Photo Galleries
    • Interactive Spotlights
  • More
    • Classified Ads
    • Roofing Contractor eNews
    • RC Store
    • Directory: Roofing Resource
    • Market Research
    • Custom Content & Marketing Services
    • Sponsor Insights
  • Events
    • International Roofing Expo
    • Industry Events
    • Webinars
    • Best of Success Conference
  • Contact
    • Advertise
  • Directory
    • Associations
    • Distributors
    • Manufacturer/Supplier
    • Get Listed
    • Business Services
  • Subscribe
    • Print & Digital Edition Subscriptions
    • Sign Up for the eNewsletter
    • Online Registration
    • Subscription Customer Service
Home » California Roofing Contractor Arrested for Workers’ Comp Fraud

California Roofing Contractor Arrested for Workers’ Comp Fraud

Police-tape-720
October 23, 2019
Chris Gray
KEYWORDS California / employees / fraud / roofing contractor / workers' compensation
Reprints
No Comments

SACRAMENTO, Calif. — A roofing contractor has been arrested on six felony counts of workers’ compensation fraud that resulted in a loss to his insurer of $50,000.

According to the California Department of Insurance, Herbert Allen Kelly III, 65, owner of Kelly Roofing Company, was arrested on Oct. 18 after allegedly underreporting his business’ payroll and number of employees.

"When business owners operate in the underground economy, they are cheating the system and create an unfair advantage that puts legitimate businesses at risk,” said Insurance Commissioner Ricardo Lara in a written statement. “We all pay the price for insurance fraud through increased costs for services and higher premiums.”

Officials state a worker employed with Kelly Roofing Company slipped and fell off a roof about 25 feet high on Jan. 12, 2015. A workers’ compensation claim was opened with Kelly’s insurer, State Compensation Insurance Fund (SCIF). Insurance officials said SCIF paid approximately $730,175 in medical and disability payments.

SCIF subsequently conducted audits of Kelly Roofing Company on a yearly basis to verify premium and payroll. During the SCIF audit for policy period 2015, when the accident occurred, Kelly reported he had no employees and $0 in payroll for the remainder of the policy period between 2014 and 2018.

Department of Insurance detectives served search warrants on both Kelly and Kelly Roofing Company’s bank accounts. Investigators said detectives uncovered approximately $89,781 in total audited payroll with up to 15 possible employees.

The department confirmed Kelly Roofing Company had employees during the period when Kelly claimed he had no employees and no payroll. The audited payroll was forwarded to SCIF, which determined Kelly Roofing Company owed approximately $50,000 in unpaid past premiums.

The case is being prosecuted by the Sacramento County District Attorney’s Office.

Did you enjoy this article? Click here to subscribe to Roofing Contractor Magazine.

Recent Articles by Chris Gray

Roofer Pleads Guilty in Wisconsin Rooftop Homicide Case

Maine Roofing Contractor Facing More Fines After Worker’s Fatal Fall

Contractor Profile: Eau Claire Roofing

Signature Roofing Keeps Residents Going with Free Gas Tradition

POWERHOUSE Solar Shingle System Featured on Lifetime’s Designing Spaces

Chrisgray
Chris Gray is the managing editor of Roofing Contractor.

Related Articles

Arrested Roofer Serves as Warning for Residents: Hire Professional Roofing Contractors

Illinois Roofing Contractor Sentenced to 3 Years in Prison for Visa Fraud; Harboring, Employing Illegal Aliens

Four Myths About Workers' Comp Costs

Related Directories

California Shingle & Shake, Fairfield, CA

California Shingle & Shake, Concord, CA

You must login or register in order to post a comment.

Report Abusive Comment

Subscribe For Free!
  • Print & Digital Edition Subscriptions
  • Sign Up for the eNewsletter
  • Online Registration
  • Subscription Customer Service

More Videos

Popular Stories

operation-freelancer-viii

16 Unlicensed Florida Contractors Arrested in ‘Operation Freelancer VIII’

ABC logo

ABC Supply Launches myABCsupply to Help Roofing Contractors Manage Business on the Go

ice-river-roofers-save-woman

Roofers Rescue Woman from Drowning in Icy River

Tesla-solar-glass-roof-v3

Tesla Hiring Roofers for Solarglass Roof Installations

gavel-law

New York Signs Laws to Protect Homeowners Against ‘Storm Chasers’

roofing quiz
Roofing Resource

Roofing Contractor Magazine

Roofing Contractor Cover 2019 November

2019 November

The November issue features our Residential and Commercial Contractors of the Year for 2019! Check out our interviews with these outstanding contractors, including video from Best of Success.
View More Create Account
  • Resources
    • Construction Group
    • Partners
    • List Rental
    • Subscribe
    • Privacy Policy
    • Survey And Sample
  • Videos
  • Want More
    • Connect
  • Advertise

Copyright ©2019. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing