Owner of Security Company Accused of Payroll Fraud

The owner of a security company in San Jose was arrested on charges of underreporting payroll by more than $12 million in an attempt to reduce his workers’ compensation premiums, the California Department of Insurance announced. Troy Carson, 55, is accused of cheating his workers’ compensation carrier out of more than $3.2 million. The department said Carson; his broker, Jaime Lugo, 60; and two executives at Security Code 3 Inc. — Victoria Cruz and Lanette Wiegand, both 46 — devised the scheme as a way to control rising comp costs for the company. ...