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Archer Building Company officials charged with insurance fraud

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Three El Dorado Hills executives have been charged with insurance fraud related to the alleged formation of a second company to avoid paying insurance premiums.

Three El Dorado Hills executives have been charged with insurance fraud related to the alleged formation of a second company to avoid paying insurance premiums.

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The owner of the Archer Building Co. in El Dorado Hills and two company executives face charges related to the alleged theft of more than $125,000 from the state workers’ health insurance fund.

John Allison, 63, of Rocklin, company chairman Troy Williams, 49, of Angels Camp and Nanci Morman, 68, of Somerset, the company’s controller and accountant, have all been charged with multiple counts of insurance fraud, the California Department of Insurance said in a news release.

Bail was set at $15,000 each for each of the individuals on Monday by El Dorado County Superior Court Judge Douglas Phimister.

Company officials did not return phone calls from The Bee.

The three defendants allegedly conspired together to illegally lower the company’s workers’ compensation rate after the company increased rates in 2016, the Department of Insurance says.

Allison, listed as the owner on the company’s website, is accused of forming a second company, Allison Development. Archer Building Co’s payroll was transferred to the new company from 2016 to 2020 to avoid paying exact insurance premiums, the press release said.

“In 2020, Allison Development’s workers’ compensation policy was rescinded and employees transferred to Archer Building Company,” the statement read.

The investigation, the statement said, found that Archer Building Co. and Allison Development attempted to defraud the state fund of $127,795 due to lower bonus payments.

Morman was the accountant and person responsible for insurance audits for both companies, according to the statement.

The next court hearing in the case is scheduled for May 26. The El Dorado County District Attorney’s Office is the prosecutor in the case.

Archer Building, client and construction company, insists on its ethics on its website.

“Starting with the simple but hugely important philosophy of ‘The Golden Rule’ and associating it with honesty, we strive to treat our customers, customers and employees the same way we like to be treated “, said the company.

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Randy Diamond is a business reporter for The Sacramento Bee.