Newport Business Owner Charged in Fraud and Tax Evasion Scheme

A Newport Beach business owner pleaded not guilty today to charges stemming from an alleged $5.6 million insurance fraud and tax evasion scheme.

Darrin Shawn Wilson, 50, the owner of American Blacktop Inc. and The Mavrick Company, is accused of underreporting his labor costs to get lower premiums on workers’ compensation insurance policies.

For one policy, the estimated underreporting of payroll was $4.3 million for 2009 to 2012, prosecutors allege. The defendant is also accused of obtaining a policy in August 2012 that underreported payroll costs by about $1.3 million.

He’s also accused of failing to pay $384,000 in taxes.

The alleged fraud came to light when a worker fell 12 feet from a ladder and attempted to put in a workers’ compensation claim. Wilson allegedly claimed the man was employed by a subcontractor that was unlicensed and uninsured.

“We’ve been in discussions with the District Attorney’s Office for approximately two years and we are hoping to resolve the matter in the next couple of months,” Wilson’s attorney, Kate Corrigan, told City News Service.

“Mr. Wilson’s prepared to defend himself against the allegations and we intend to do so in a vigorous manner... It’s unfortunate they made the decision to file against him.”

Wilson was charged Friday and surrendered to authorities on Monday, Corrigan said.

Wilson, who posted $500,000 bail, is scheduled to return to court Feb. 9 for a pretrial hearing.

City News Service