SAN BERNARDINO, Calif.  – Two men have been charged with conspiracy and three counts of workers’ compensation fraud for allegedly misrepresenting to the Insurance Company the kind of work their employees perform.

In Jan. 2011, the District Attorney’s Office Workers’ Comp Fraud Unit received information from First Comp Insurance alleging that Erick Gamm, 43, of Chino Hills, was possibly committing insurance fraud. As a result of the investigation, arrest warrants were issued for Gamm and co-conspirator Gregory Santolucito, 32, of Hesperia. Gamm and Santolucito are accused of conspiring to defraud First Comp Insurance of over $100,000 in unpaid insurance premiums by falsifying employee wages.

According to Deputy District Attorney Michael Dauber, who is assigned to the case, the basic fraud is an alleged lie about the kind of job or task the employee is performing. As a result the employer was able to pay the insurance company a lower rate.

“This kind of case is not uncommon,” said Dauber. “Ultimately, the insurance company is not being paid for the amount of risk they assume. And this cost is passed on to the average person in terms of increased rates.”

Gamm was arrested March 30, 2012, and booked into West Valley Detention Center. On April 30, 2012, Santolucito surrendered himself to the San Bernardino County Sheriff’s West Valley Detention Center in Rancho Cucamonga. If convicted on all counts, Gamm faces a maximum of six years in state prison and Santolucito faces a maximum of seven years in state prison. Gamm is scheduled to be arraigned June 28 and Santolucito is scheduled to be arraigned on July 5.

Click here to read a copy of the complaint.