LOS ANGELES – PacifiStaff trained construction companies to violate workers compensation laws by using “fake corporations with phantom executives,” the State of California claims in Superior Court. Undercover agents attended PacifiStaff sales meetings where the company pitched its illegal scheme, telling companies to “fire their workers and rehire them in fake corporations with phantom executives,” Attorney General Jerry Brown said.
PacifiStaff instructed construction companies to fire their employees “and rehire them as corporate officer of a sham corporation. These construction workers were then given executive titles and a single share of worthless stock in the new corporation. The sham corporation then sent the new fake executives back to construction sites, without the required workers’ compensation insurance,” Brown said in a statement. He added, “Investigators also found that staff representatives engaged in the unauthorized practice of law by offering legal advice without a license.”
PacifiStaff, using the trade name “Workforce Solutions” bills itself as the “Antidote to Workers’ Compensation.” Brown claims the Anaheim-based company continues to sell its illegal services through trade shows, print advertising and over the Internet. See complaint.