NEWS RELEASE
Commissioner Poizner Announces Three Arrested in Connection
with $5 Million Workers' Compensation Insurance Fraud
Insurance Commissioner Steve Poizner announced today the arrests of three individuals charged
with 48 counts of workers' compensation insurance fraud, labor code violations and tax fraud.
Monica Mui Ung, 49, of Alamo; Joey Ruan, 31, of San Leandro; and Tin Wai Wu, 28, of Millbrae
were arrested today. Bail was set at $535,000 for each suspect.
"When businesses cheat the system to save money, they are only setting themselves up to pay
later - by serving time in prison," said Commissioner Poizner. "The Department of Insurance will not
stop going after fraud perpetrators until every one is brought to justice."
CDI led the investigation, with assistance from the Employment Development Department. The
investigation revealed that Ung owned and operated NBC General Contractors Inc., a general
building contracting company. The company focused primarily on public works projects such as El
Cerrito City Hall and Piedmont Elementary School. From May 2003 to May 2007, NBC was
awarded at least 27 public works projects in Alameda, Contra Costa, San Francisco, San Mateo
and Marin Counties.
The cost for NBC's workers' compensation insurance was determined by employee wages, total
amount of payroll and job classifications of the employees. Ung, Ruan and Wu allegedly made
intentional and material misrepresentations to their workers' compensation insurance carrier to
misclassify the type of work their employees were performing, as well as falsely reporting the
hourly wage of more than 70 employees, saving them a significant amount in workers'
compensation premiums.
By allegedly falsely reporting the type of work performed by employees and wages paid, NBC
exposed the workers' compensation insurer to additional risk and allowed the company to engage
in unfair business practices by giving an advantage over employers who correctly reported their
payroll and risk. Because public works projects are typically awarded to the lowest bidder, the
alleged fraud gave NBC a significant advantage over competitors. This alleged false reporting
resulted in a total loss of premiums of more than $1.45 million.
Additionally, investigators allege that NBC did not pay overtime or sick leave to employees, as
required under labor laws. These losses are estimated at $3.6 million in unpaid wages to 19
employees.
This case is being prosecuted by the Alameda County District Attorney's Office.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the
state. Close to 1900 insurance fraud-related arrests have been made by the Department of
Insurance's Enforcement Branch since Commissioner Poizner took office in 2007 - more arrests
than have been made during any other two year period, under any previous insurance
commissioner.
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Commissioner Poizner Announces Three Arrested in Connection
with $5 Million Workers' Compensation Insurance Fraud
Insurance Commissioner Steve Poizner announced today the arrests of three individuals charged
with 48 counts of workers' compensation insurance fraud, labor code violations and tax fraud.
Monica Mui Ung, 49, of Alamo; Joey Ruan, 31, of San Leandro; and Tin Wai Wu, 28, of Millbrae
were arrested today. Bail was set at $535,000 for each suspect.
"When businesses cheat the system to save money, they are only setting themselves up to pay
later - by serving time in prison," said Commissioner Poizner. "The Department of Insurance will not
stop going after fraud perpetrators until every one is brought to justice."
CDI led the investigation, with assistance from the Employment Development Department. The
investigation revealed that Ung owned and operated NBC General Contractors Inc., a general
building contracting company. The company focused primarily on public works projects such as El
Cerrito City Hall and Piedmont Elementary School. From May 2003 to May 2007, NBC was
awarded at least 27 public works projects in Alameda, Contra Costa, San Francisco, San Mateo
and Marin Counties.
The cost for NBC's workers' compensation insurance was determined by employee wages, total
amount of payroll and job classifications of the employees. Ung, Ruan and Wu allegedly made
intentional and material misrepresentations to their workers' compensation insurance carrier to
misclassify the type of work their employees were performing, as well as falsely reporting the
hourly wage of more than 70 employees, saving them a significant amount in workers'
compensation premiums.
By allegedly falsely reporting the type of work performed by employees and wages paid, NBC
exposed the workers' compensation insurer to additional risk and allowed the company to engage
in unfair business practices by giving an advantage over employers who correctly reported their
payroll and risk. Because public works projects are typically awarded to the lowest bidder, the
alleged fraud gave NBC a significant advantage over competitors. This alleged false reporting
resulted in a total loss of premiums of more than $1.45 million.
Additionally, investigators allege that NBC did not pay overtime or sick leave to employees, as
required under labor laws. These losses are estimated at $3.6 million in unpaid wages to 19
employees.
This case is being prosecuted by the Alameda County District Attorney's Office.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the
state. Close to 1900 insurance fraud-related arrests have been made by the Department of
Insurance's Enforcement Branch since Commissioner Poizner took office in 2007 - more arrests
than have been made during any other two year period, under any previous insurance
commissioner.
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