Roofer Pleads Not Guilty in Embezzlement Case

A roofing firm owner accused of a $300,000 embezzlement and insurance fraud pleaded not guilty Monday in Orange County Superior Court.

County prosecutors have charged Ronald Strunk, former president of now-defunct Far West Roofing Co., with two counts of grand theft for allegedly taking money out of the roofing company for personal use and selling heavy equipment that was collateral for an $800,000 bank loan.

Prosecutors also charged Strunk with two counts of grand theft for allegedly understating the number of employees to his insurance carrier, Golden Eagle Insurance Co., and the State Compensation Insurance Fund to receive lower workers’ compensation rates.

“They misrepresented their payroll to the insurance carrier,” Deputy Dist. Atty. Doug Brannan said.

Strunk, who is free on his own recognizance, could not be reached for comment. His attorney, John Barnett of Orange, said Strunk, who was charged last May, has “committed no crime.” A trial date has not yet been set.

If convicted, Strunk could receive a maximum sentence of five years, eight months, Brannan said.

Prosecutors said Strunk paid for an associate to head a shell company that leased employees back to Far West. By claiming there were fewer employees at Far West, the company paid lower insurance premiums, Brannan said. He estimates the company avoided paying more than $150,000 in insurance costs. The associate, Bill Fitzgerald, is testifying for the prosecution in exchange for immunity.

Barnett said Strunk legitimately leased employees from Fitzgerald’s company, FW Roofing, which should be held responsible for paying workers’ compensation insurance premiums. Indeed, the State Compensation Insurance Fund concluded after an earlier investigation that Strunk was not liable for the premiums, Barnett said.

Regarding the embezzlement charges, Barnett said the lender had seized the company’s accounts, which were far in excess of the company’s debt. The bank also permitted Strunk to sell some of the equipment to raise capital, the attorney said.

As a result of Far West’s financial problems, the company shut down in April 1993, nine years after Strunk founded it. Barnett declined to comment on what other businesses Strunk now operates.