San Francisco construction firm accused of insurance, tax fraud

SAN FRANCISCO – The operators of a San Francisco-dependent design enterprise, along with the firm’s place of work supervisor, are facing various felony rates for allegedly engaging in insurance policy and tax fraud.

District Legal professional Brooke Jenkins’ place of work declared that fees have been submitted towards Gemma Maher, the office administrator of Cullinane Plastering. Meanwhile, warrants have been issued for owner Denis Cullinane and Jeremiah “Jerry” Cullinane, who also owns Cullinane Construction.

According to the DA’s office, the trio allegedly engaged in a multi-12 months plan to defraud personnel, the State Compensation Insurance coverage Fund and the California Personnel Progress Office. The plan allegedly hid $5.8 million in unreported payroll to stay away from having to pay insurance plan premiums and payroll taxes.

“These inexcusable crimes victimize hard-operating staff trying to get paid a living and cheated taxpayers out of hundreds of thousands in public methods,” Jenkins reported in a statement. “Keeping Cullinane accountable for these crimes is important to making sure that staff are protected, and the procedure is not exploited with inflated and unfair prices to insurers, buyers, companies, and taxpayers.”

Prosecutors reported the alleged scheme was identified following an personnel was significantly wounded in 2019.

In its place of informing the employee that he was entitled to workers’ payment, the trio allegedly hid the employee’s injuries from the SCIF for virtually a calendar year. The moment the damage was disclosed, prosecutors stated Maher allegedly misrepresented the worker’s work background and harm.

An investigation exposed that the trio made use of Jerry Cullinane’s development business to conceal the hurt worker’s wages from the SCIF and EDD. The trio also allegedly submitted fraudulent personnel payroll information and facts to both equally organizations for quite a few years, artificially lowering their workers’ payment rates and tax contributions.

Prosecutors estimate the SCIF shed $270,000 in unpaid rates and an estimated decline to EDD of in excess of $300,000 in unpaid payroll taxes, along with much more than $1.5 million in unpaid taxes and penalties.

As of Thursday, Denis and Jerry Cullinane remain at big. The court docket has frozen all 3 of the defendants’ property.

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