The operator of a Mountain View painting company is facing charges of insurance fraud, according to the Santa Clara County District Attorney's Office.
Bill Won Yi, 42, of Campbell lied about his company's safety record and "grossly underreported" payroll by hiring unlicensed contractors and paying some employees in cash between 2004 and 2010, district attorney's officials said.
Yi was arrested on April 12 and charged with cheating his worker's compensation insurance carrier out of more than $200,000, prosecutors said.
"This type of fraud scheme puts workers at risk of having insufficient or no insurance coverage if they are injured on the job," said Deputy District Attorney Christopher Kwok.
California law requires all businesses with employees to maintain workers compensation insurance. Insurance premiums are based on information about the nature of the business, its safety record, and employee's wages, all of which are reported by the employer, the district attorney said.