Three individuals linked to a California general contracting company face a number of charges stemming from an alleged $5 million workers’ compensation scheme.

Monica Mui Ung, 49, of Alamo, Calif.; Joey Ruan, 31, of San Leandro, Calif.; and Tin Wai Wu, 28, of Millbrae, Calif., are charged with 48 counts of workers’ compensation fraud, labor code violations and tax fraud, according to California Insurance Commissioner Steve Poizner.

An investigation by the state’s insurance department revealed that Ung owned an operated NBC General Contractors Inc., a general building contracting company. From May 2003 to May 2007, NBC General Contractors was awarded at least 27 public works projects in five California counties.

Ung, Ruan and Wu allegedly made intentional and material misrepresentations to their workers’ compensation insurance carrier to misclassify the type of work their employees were performing, as well as falsely reporting the hourly wage of more than 70 employees, saving them a significant amount in workers’ compensation premiums, according to Poizner’s office.

The alleged false reporting resulted in a total loss of premiums of more than $1.45 million and NBC General Contractors did not pay overtime or sick leave to employees, required under labor laws, resulting in losses of $3.6 million in unpaid wages to 19 employees, according to the office.

“When businesses cheat the system to save money, they are only setting themselves up to pay later – by serving time in prison,” Poizner said in a statement. “The department of insurance will not stop going after fraud perpetrators until every one is brought to justice.”