The death of a California truck driver led to a workers’ compensation investigation that found $2 million in underreported wages

An investigation launched after an employee was found dead in a company tractor-trailer resulted in the indictment of a California man on three counts of workers’ compensation fraud.

Heigo Kubar, 84, of Fresno, was charged with three counts of workers’ compensation fraud after an investigation by the Central Valley Workers’ Compensation Fraud Task Force found that Kubar allegedly underreported more than $2 million in payroll taxes to save on his trucking company’s workers’ compensation insurance.

Kubar is the former owner of TKJ Trucking. Kubar’s insurer became suspicious and launched an investigation after a TKJ Trucking employee was found dead in a company tractor-trailer. The insurer reportedly found that Kubar had classified the employee as a company salesperson, not a truck driver, prior to his death. Less than a month after the death, TKJ Trucking changed the employee’s job classification to truck driver.

An investigation by the Fresno County District Attorney’s Office found that the deceased employee had worked as a truck driver for TKJ Trucking for approximately 15 years. At the time of his death, insurance costs for a salesman were approximately $1 per $100 of payroll, but insurance costs for a truck driver were approximately $20 per $100 of payroll.

As part of the task force’s investigation, an audit by the California Department of Insurance found that between December 1, 2018, and December 1, 2021, TKJ Trucking had workers’ compensation insurance and reported $875,591 in wages and salary payments for its employees. However, the company actually only reported $3,233,899 in wages and salary payments, an underreporting of $2.3 million, leaving the insurer owed $480,093 in insurance premiums.

The case is being prosecuted by the Fresno County District Attorney’s Office. Kubar’s next court date is scheduled for August 14.

subjects
Workers’ Compensation for Truck Drivers in California