Press release: People v. Raymond Nunez and Sandra Lynn Lawson-Nunez, July 26, 2001

District Attorney Jan Scully announced today that Raymond Nunez and his wife Sandra Lawson-Nunez pled guilty to felony insurance fraud in violation of Insurance Code Section 11880(a).

Raymond Nunez and Sandra Lawson-Nunez owned, operated and did business as Furniture Saving Center (aka) Ray Nunez Used Furniture, Valley Distributors and Beds 4 U. They employed a number of people working in classifications ranging from clerical and salespersons to furniture movers. Between the years of 1996 and 1999, the Nunez's were committing insurance fraud by what is sometimes called "Paying Under The Table". In this practice or scheme, employee's wages paid partially or fully in cash and those cash payments were not reported by either the Nunez's or the employees. This practice greatly benefited the Nunez's, giving them an advantage over their competitors in the marketplace.

As a result of not reporting the correct wages, State Compensation Insurance Fund was not paid workers compensation premiums on approximately $1,000,000. The under-reported wages to the State of California Employment Development Department over the time period totaled approximately $924,000.

According to Deputy District Attorney Joseph C. Townsell of the Insurance Fraud Unit, spokepersons for the State Compensation Insurance Fund determined their loss in premiums was $88,883.28. The State of California Employment Development Department stated that the amount owed to them was $60,688.41.

At this date, the Nunez's have submitted checks in full payment to the Employment Development Department and $59,552.00 to the State Compensation Insurance Fund with an agreement to pay the balance owed over a period of eighteen months.

They will appear for sentencing before The Honorable Judge Jane Ure in Dept. 62 on August 22, 2001 at 10:30 AM.