EL DORADO COUNTY, Calif. (November 21, 2023) – In a dramatic turn of events at the Placer County Superior Court on November 7, 2023, David Allen Elkan, a contractor operating under the banner of Newcastle Screen Company, entered a plea deal admitting guilt to two felony counts and two misdemeanor counts. The charges stemmed from a reprehensible case that victimized more than a dozen individuals spread across five counties.
Elkan’s admission of guilt included two felony counts under Penal Code section 484b, specifically for Diverting Construction Funds Exceeding $2,350. In addition, he copped to two misdemeanor counts for violating Labor Code section 3700.5, Failure to Secure Payment of Compensation. A total of 24 other counts were dismissed as part of a Harvey waiver.
At the heart of the matter was Elkan’s unscrupulous modus operandi. The contractor was found to be accepting disproportionately large deposits from clients, only to leave projects incomplete or delegate tasks to employees without providing adequate worker’s compensation insurance.
As a consequence of his actions, Elkan has been slapped with a two-year formal probation period and a 90-day jail sentence. Furthermore, he is mandated to compensate over $27,000 to 16 victims scattered across five neighboring counties. The court also issued a restraining order, prohibiting Elkan from approaching the homes of the victims, contacting them in any way, and engaging in contracting activities without a valid license or insurance.
The investigation leading to this conviction was spearheaded by El Dorado County District Attorney Investigator Ryan Lorey. Handling the prosecution was El Dorado County Deputy District Attorney April Flores, who, incidentally, holds the position of a Special Deputy District Attorney in Placer County.
This verdict serves as a stern warning against those seeking to exploit their positions for personal gain, as the legal system works diligently to protect the rights and interests of victims.
