Jeffrey F. Rosen, District Attorney  CONTACT PERSON:
Katharina L. Wells, Deputy District Attorney
(408)792-2530   For release on June 29, 2011     EMPLOYER GUILTY OF WORKERS’ COMPENSATION INSURANCE PREMIUM FRAUD  Daniel E. Nelson, 49, of San Jose, the owner of an entertainment company, Worldwide Attractions/Monster Magic LLC which specializes in Halloween attractions, was sentenced to four months county jail on June 6, 2011 after pleading guilty to felony workers’ compensation insurance premium fraud. The California Department of Insurance conducted an extensive investigation and audit of Nelson’s businesses after learning that Nelson was underreporting wages to the State Compensation Insurance Fund a major workers’ compensation insurance carrier in California.   The premium for workers’ compensation insurance, which is required by California law for all businesses with employees, is assessed based on the employees’ wages as reported by the employer. By fraudulently underreporting such wages, Nelson illegally and substantially reduced his businesses’ workers’ compensation insurance premium. This type of scheme gives the underreporting businesses an unfair advantage over competitors which properly report their wages and pay their premiums. Workers’ compensation insurance premium fraud also puts workers at risk of having insufficient or no insurance coverage if they are injured on the job.   As a part of his conviction and sentence, Nelson was ordered to pay, and did paid full restitution in the amount $55,000.00 to State Compensation Insurance Fund.   ###    

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