A Southern California business owner faces 63 years in state prison for numerous charges, including 18 felony counts of misrepresenting facts to State Compensation Insurance Fund, according to the Orange County District Attorneyâ€™s Office.
Prosecutors say George Osumi II, 64, reported $1 million in payroll to State Fund between December 2001 and March 2006. The Orange County District Attorneyâ€™s Office said his actual payroll was $4.5 million. Not reporting the additional $3.5 million in payroll resulted in a loss of $814,000 in premium owed to the carrier.
Osumi faces sentencing enhancement allegations for misrepresenting facts to State Fund, committing aggravated white collar crime over $500,000, property damage in excess of $65,000 and committing a crime while released from custody on bail on another felony.
An arraignment hearing scheduled for Wednesday was carried over to June 7.
Prosecutors say Osumi created several construction companies under the ownership names of family and close friends to avoid tax liability. Between 2001 and 2011, Osumi allegedly created PMC Inc., JECM, JECM Inc., Kate Osumi Enterprises Inc., KIO LLC, Legend Cellars Inc., Legendary Company Group LLC, P.M.C. Group IV Inc., Property Maintenance & Construction LP and TMS Inc.
Osumi is accused of committing perjury in April 2011, when he reportedly told the Contractors State License Board that he did not operate a business that required workersâ€™ compensation insurance.
Osumi is also accused of obtaining a credit card in the name of a former business associate and withholding state taxes and disability insurance benefit payments from his employees and not forwarding those withholdings to the state. He also allegedly distributed paychecks with insufficient funds to employees.
Osumi was indicted on Feb. 10 on 18 felony counts of misrepresenting facts to State Fund, 14 felony counts of failing to file a return with intent to evade tax, 14 felony counts of willful failure to pay tax, 14 felony counts of willful failure to pay unemployment insurance and employment training tax, nine felony counts of willful failure to pay disability insurance deductions, one felony count of identity theft and one felony count of perjury.
Source: Orange County District Attorneyâ€™s Office, WorkCompCentral