(Phoenix, Ariz. – Oct. 25, 2010) Attorney General Terry Goddard today announced that Damian Andre, 36, of Camp Verde, has been sentenced by Maricopa County Superior Court Judge Daniel Martin to one year in county jail on fraud charges.
For several years, Andre served as President of Arizona Payroll Systems, Inc., which provided payroll services for small businesses in Camp Verde, Cottonwood and Sedona. Over a two-year period from 2005 to 2007, Andre collected worker's compensation premiums from his small business clients but falsely reported the hours, wages and type of work to the State Compensation Fund of Arizona. Because worker's compensation premiums are based upon type of work, hours worked and wages earned, Andre’s misrepresentations caused the State Compensation Fund of Arizona to be underpaid by $72,453 in premiums.
In addition to jail time, Andre was also sentenced to five years probation on the charge of fraudulent schemes and artifices, a class 2 felony, and three years probation on the charge of misrepresentation affecting premiums for worker’s compensation insurance, a class 6 felony. He was also ordered to pay $72,453 in restitution to the State Compensation Fund of Arizona and a $9,000 fine.
This case was investigated by the Arizona Department of Insurance Fraud Unit and prosecuted by Assistant Attorney General Beverly Rudnick.
A copy of Andre’s photo is attached. For more information, contact Mika Marquart at (602) 542-7714.