May 15, 2024 - FRESNO, Calif. —Heigo Kubar, 84, of Fresno, was arraigned today on three felony counts of workers’ compensation fraud, after a Central Valley Workers’ Compensation Fraud Task Force investigation discovered he allegedly underreported over $2 million in payroll to illegally save on workers’ compensation insurance for his trucking company. The investigation began after an employee was found deceased in a company owned semi-truck.

Kubar is the former owner of TKJ Trucking. Following an unfortunate incident where a TKJ Trucking employee was found deceased in company owned semi-truck, Kubar’s insurance company became suspicious and began an investigation. The insurance company found that leading up to the death of this employee, Kubar had classified the employee as a company salesperson, not a truck driver. Twenty-five days after the death, TKJ Trucking amended the employee’s job classification to truck driver.

An investigation, led by the Fresno County District Attorney’s Office, found the deceased employee had been working for TKJ Trucking as a truck driver for approximately 15 years. At the time of their death, the cost to insure a sales person was approximately $1 for every $100 in payroll, but the cost to insure a truck driver was approximately $20 for every $100 in payroll.

An audit by the California Department of Insurance, as part of the task force investigation, revealed that between December 1, 2018 to December 1, 2021, TKJ Trucking had workers’ compensation insurance coverage and reported $875,591 in employee payroll, however, the company actually had $3,233,899 in payroll. Kubar underreported payroll by $2,358,307, resulting in insurance premiums of $480,093 owed to Kubar’s insurance company.

The Central Valley Workers’ Compensation Fraud Task Force is an inter-agency anti-fraud partnership with members from the California Department of Insurance, the Fresno County District Attorney’s Office, the Tulare County District Attorney’s Office, the Kings County District Attorney’s Office, the Kern County District Attorney’s Office, the Merced County District Attorney’s Office, the Madera County District Attorney’s Office, the San Luis Obispo County District Attorney’s Office, the California Employment Development Department, and the California Franchise Tax Board.

This case is being prosecuted by the Fresno County District Attorney’s Office. Kubar is scheduled to appear in court next on August 14, 2024.
Source: CA. Dept. of Ins.