A Diamond Bar, Calif., man who underreported the number of employees at his nurse staffing agency, thus resulting in the underpayment of workers’ compensation coverage, will now pay $1.3 million to the state.
Joseph Baiden
Joseph Baiden, 57, was ordered to pay the restitution by a California Superior Court judge. He also was ordered to serve five years of supervised probation, including 90 days of electronic monitoring, according to the Los Angeles County District Attorney’s Office.
An investigation into Baiden’s Nurse Connection Inc. began following a referral in September 2008 by the State Fund, alleging underreporting workers’ compensation on quarterly payroll reports. An anonymous tip indicated that Baiden falsified payroll records, as well as California and federal tax filings over a six-year period, according to insurance regulators.
Baiden was accused of misrepresenting $20 million in payroll for Nurse Connection in an attempt to conceal the actual risk to the insurance carrier, resulting in a reduction of his workers’ compensation premiums by the $1.3 million, according to officials.
In addition to the $1.3 million, Baiden must pay the California Department of Insurance investigative costs of $110,000 and submit his annual corporate tax returns to insurance regulators and the district attorney’s office. Baiden also must submit proof of current workers’ compensation insurance upon his return to court for a progress report on Nov. 8.
Calif. man to pay $1.3 million for underpaying workers’ comp. premiums via IFAwebnews.com .
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