Woodland Man Convicted of Fraud Crimes

Press Release

(Woodland, CA) – July 5, 2016- District Attorney Jeff Reisig announced today that on June 30, 2016, 48-year-old Woodland man Steven Chaudhry pled no contest to charges of failing to provide worker’s compensation insurance, operating a security business without a license and tax evasion. Yolo County Superior Court Judge Daniel Maguire sentenced Chaudhry to three years informal probation, 80 hours of community service and imposed a fine of over $41,000.

In 2012, Chaudhry and Brian Hines, his co-defendant, entered into a conspiracy whereby Hines allowed Chaudhry to use his Private Patrol Operator License (PPO) to hire security guards and offer security guard services. Using Hines’ PPO license, Chaudhry entered into dozens of contracts where he provided security services without having a license to do so, something both defendants knew was illegal. Chaudhry also hired several security guards who did not have the required security guard cards. Chaudhry referred to his employees “volunteers,” even though he paid them by the hour and treated them as employees. This allowed Chaudhry to avoid paying taxes on some of his employees’ wages. Hines was convicted of operating as a private patrol operator without a license and will be sentenced on Aug. 3, 2016.

Although Chaudhry had multiple employees, he did not obtain workers’ compensation insurance to cover them until April of 2015. Chaudhry also continued offering security services despite not obtaining a PPO license until February of 2015. This crime was discovered as a result of diligent investigation by the Woodland Police Department and the Yolo County District Attorney’s Workers’ Compensation Investigator.

District Attorney Jeff Reisig stated that when citizens hire security services for their property or event, they deserve to have licensed and insured companies providing those services. “Ensuring that companies are properly licensed and insured protects the public from unscrupulous business practices, protects employees’ rights, and promotes a fair playing field for all businesses in Yolo County.”

To ensure that a company has a PPO, visit the Bureau of Security and Investigative Services at www.bsis.ca.gov.

If you suspect someone is committing Workers’ Compensation Insurance Fraud please contact the DA’s Fraud Hot Line phone number at (530) 406-4524. Reports of suspected fraud can also be made online at www.yoloda.org/fraud.htm. The District Attorney’s Office also has a “Fraud Reporting E-mail Address”: Fraud@yoloda.org.

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