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Framer's Business Practices Not Plumb With California Law
By Robert Warne - July 1, 2003

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Framer's Business Practices Not Plumb With California Law
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To prevent further preliminary hearing delays in the largest workers’ compensation premium fraud case in the state’s history, Alameda County Deputy District Attorney, George Wood II slapped the owners of a residential framing company with an 11-count indictment.

Jay Neal Wright, 50, and his son, Jay Neal, 29, surrendered to Alameda County authorities June 30. The two built and operated a Bay Area framing empire in the 1990s and are accused of defrauding the state and insurers of $11.5 million.

The judge’s move to indict eradicated the need to hold a preliminary hearing and cleared the way for a July 28 arraignment.

Highland Framers and its 16 other corporate incarnations burned Golden Eagle, State Fund, Farmers, Superior National, Frontier Pacific, and Credit General by underreporting payroll. It was Golden Eagle though that took the biggest hit out of the combined $3.5 million loss suffered by the group of carriers from the framer’s 12 workers’ compensation policies.

Caught in a web of approximately 82 lawsuits that resulted in $18 million in judgments, long gone are the days the Wrights enjoyed the personal jet, yacht and the luxury homes they owned at one time.

The father and son framing pair were set free to go back to their home in Arizona after Wright posted $145,000 bail and his son came up with $90,000.

If convicted on all counts the Wrights could be framed behind bars for over 10 years and could each be fined $50,000. But if the Department of Insurance has its way, each will also be assessed $30 million in civil penalties as well.

 
 

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