Jeffrey F. Rosen, District Attorney CONTACT PERSON:
Janice Doi, Deputy District Attorney
Insurance Fraud Unit
(408)792-2459 For release on March 2, 2011 DEFENDANT TO SERVE 10 YEARS FOR WORKERS’ COMPENSATION INSURANCE FRAUD AND TAX EVASION
Gerald Quint, 54, of San Jose, was sentenced to 10 years in state prison on February 28, 2011. Quint was convicted of 19 felony counts of worker’s compensation insurance premium fraud, income tax evasion and unemployment insurance (payroll) tax evasion. As a part of his sentence, he was also ordered to pay over $2.7 million in restitution. Quint owned and operated New Century Transportation, a nearly 100-vehicle transportation company, which contracted with Santa Clara County VTA to provide Altamont Commuter Express (ACE) shuttle services and the DASH (Downtown Area Shuttle) shuttle services. New Century also had contracts with local corporations to run shuttle buses from major transportation hubs and light rail stations out to various corporate sites, and provide transportation for various events. The defendant’s convictions were based on the following: A Franchise Tax Board (FTB) criminal investigation and audit revealed that, between 2002 and 2007, New Century Transportation failed to report nearly $11 million in income. This resulted in a corporate and personal income tax evasion of over $506,000. Moreover, a California Employment Development Department (EDD) investigation revealed that Quint failed to report over $5 million in payroll as required by law between 2004 and 2008. This resulted in a payroll tax evasion of over $925,000. Finally, a District Attorney investigation revealed that the defendant committed workers’ compensation insurance fraud by underreporting payroll to fraudulently and substantially reduce the business’s workers’ compensation insurance premium by over $1.3 million over the years.
By committing taxes evasion and insurance premium fraud, the defendant lower his costs to compete unfairly with honest companies in the same business. Furthermore, workers’ compensation insurance premium fraud subjects injured workers to risks of unfair treatment. ###