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| | Shuttle Bus Company Accused Of Insurance Fraud, Tax Evasion By Associated Press - February 16, 2007SAN JOSE, Calif. (AP) _ Two owners of a shuttle bus company are accused of illegally concealing millions of dollars in revenue and wages from the government and pocketing taxes taken from their workers' paychecks, prosecutors said Thursday.
Gerald Quint, 50, of San Jose, and Susan Stommel, 50, of Pleasanton, were arrested Wednesday on suspicion of defrauding the state and workers' compensation insurance carriers of more than $2.2 million, according to the Santa Clara County district attorney's office.
That figure rises to more than $3 million when interest and penalties are factored in, prosecutors said.
Quint and Stommel face charges of workers' compensation insurance fraud, grand theft and various forms of tax evasion for the alleged scheme at their company, New Century Transportation Inc.
The company, which has about 30 employees, operates Altamont Commuter Express (ACE) shuttles and Downtown Area Shuttle (DASH) services and contracts with corporations to run shuttle buses from transportation hubs to corporate offices.
Prosecutors said Quint and Stommel failed to report more than $4.5 million in wages paid to employees from 2004 to 2006, and pocketed the taxes taken from workers' paychecks instead of turning them over to the government. The two also allegedly failed to report nearly $11 million in revenue between 2002 and 2005, which allowed them to pay less state corporate and personal income taxes.
The underreported payroll information was used to calculate the workers' compensation premium amount that New Century paid, and resulted in lower premiums for the business, prosecutors said. |