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The Monterey County District Attorney announced that Hector Hernandez, a 38-year-old King City resident and owner of Hernandez Roofing, was sentenced to 5 years felony probation for insurance fraud and state tax evasion.

As a term of probation, Hernandez was ordered to pay $159,059.03 in restitution to his workers’ compensation insurance carrier, State Compensation Insurance Fund.

Between 2013 and 2016, Hernandez secured a workers’ compensation insurance policy for his business through the State Compensation Insurance Fund. In order to pay lower insurance premiums, he denied having any employees.

The District Attorney’s Office opened an investigation in February 2016, obtaining building permits showing that Hernandez handled about 96 roofing jobs in a 4 year period.

Interviews of workers and homeowners revealed that he used at least 3 employees for these jobs. Hernandez attempted to conceal the employees and wages by paying cash. Investigators calculated Hernandez defrauded the State Fund of $159,059.00 in premiums.

The District Attorney filed felony charges on January 23, 2018. The charges included intentionally misrepresenting his payroll to obtain a reduced premium – a violation of Insurance Code Section 11880(a).

Hernandez was also charged with payroll tax violations of the Unemployment Insurance Code. He pled guilty to 3 felonies on August 23, 2019.

The case was investigated by Monterey County Workers’ Compensation Fraud Unit Investigators Martin Sanchez and George Costa.