Applegates Pay $200K in Restitution, Await Sentencing

John and Camille Applegate, former spouses who remained business partners in Hallmark Roofing, have paid $200,000 in restitution, according to the San Mateo County District Attorney's Office. The couple was charged last spring with eight counts of insurance fraud and two counts of workers' compensation premium fraud.

On Wednesday, the Applegates provided the District Attorney’s Office two
$100,000 checks as the first part of restitution. 

Earlier this month, the defendants told San Mateo County Superior Court Judge Mark Forcum they would be using the proceeds from the sale of their home to pay the restitution to the State Compensation Insurance Fund and Employment Development Department.

On Wednesday the defense's motion to continue the case was granted and the case was reset to Nov.27, 2012 9:00 a.m. for further restitution hearing and for imposition of sentence.

for allegedly failing to report employee wages and not paying workers' compensation premiums from 2007-2011.

A forensic audit by the state Department of Insurance determined the Applegates did not pay hundreds of thousands of dollars in insurance premiums, allowing their company to make lower bids on projects than their competitors.

The couple also failed to file tax returns in both 2010 and 2011, according to the District Attorney’s Office. If convicted, they could each face up to five years in prison each and fines in excess of $1 million, according to the state Department of Insurance.

The defendants are out of custody on $50,000 bail bond.

The maximum sentence promised by the court was three years imprisonment; the district attorney has requested seven years imprisonment.