A man’s death in a vehicle crash in San Jose led to the uncovering of a $460,000 insurance fraud scheme orchestrated by a local business owner, according to the Santa Clara County District Attorney’s Office.
The incident in question took place in June 2020 when employees of local roofing business, CD All Roofing, experienced a tire blowout in one of their company trucks, resulting in a fatal crash. The business owner, 64-year-old Charlie Duong, attempted to conceal the fact that the deceased employee had been working full-time at the company for years.
Duong falsely claimed that the victim had only begun working at the company a few days before the incident and that he was a part-time worker. He also strove to prove that the victim was not “on the job” at the time of the crash, despite it occurring in a company vehicle.
Investigations revealed that the victim was Duong’s longtime second-in-command at CD All Roofing. Duong’s falsification of records resulted in the victim’s wife losing benefits. Further evidence indicated that Duong asked another surviving employee from the crash to lie to investigators, but the employee refused and informed investigators about the victim’s long-term employment at the company.
Duong was arraigned on Monday on charges that include providing false information for his employees to evade insurance premiums. He faces felony charges for his fraudulent actions and if convicted, could spend time in jail.
This case illustrates the significant impact of insurance fraud, which is not a victimless crime. It raises insurance premiums for everyone, leaving innocent workers and their families vulnerable to financial hardship. It also underscores the importance of legal and ethical business practices.