“Cases like this one are particularly egregious, employees were not only put at great risk, but they were denied their hard-earned wages,” Ricardo Lara, California insurance commissioner, said in a release. Credit: Shutterstock.com
The owner of B&J Tree Service in California is facing 96 felony counts ranging from wage theft and denial of workers’ comp benefits to insurance fraud and perjury, according to the California Department of Insurance (CDI), which reported the business was underreporting payroll and withholding wages.
The company’s owner, Bobby Levell Gilbert, Jr., self-surrender to the charges on Sept. 29, 2023. Bertha Rubi Sanchez, the business’ office manager, was also charged with a number of felonies for playing a role in the alleged scheme, CDI reported. Sanchez also surrendered on Sept. 29.
From October 2013-August 2021, Gilbert and Sanchez were underreporting payroll to their insurance carriers by approximately $1.3 million, according to CDI, which reported this resulted in an illegal reduction of workers’ comp premiums by approximately $248,757. The company also had some $140,400 in unpaid payroll taxes.
CDI’s investigation also found that the company was denying injured employees workers’ comp benefits as well as withholding pay employees were owed. In total, 32 employees were denied wages or workers’ comp benefits.
“Cases like this one are particularly egregious, employees were not only put at great risk, but they were denied their hard-earned wages,” Ricardo Lara, California insurance commissioner, said in a release. “We remain committed to working with our partners, including the Orange County District Attorney’s Office, Employment Development Department and the Department of Industrial Relations to ensure employees get the protections they deserve.”
The arraignment for Gilbert and Sanchez was continued until Dec. 13, 2023.
The workers’ comp sector sees approximately $34 billion in fraud each year, according to the Coalition Against Insurance Fraud. Around $9 billion of that total comes from premium fraud, with the rest coming in the form of claims fraud.
Related:
www.propertycasualty360.com
https://www.propertycasualty360.com/2023/10/10/tree-service-owner-charged-with-insurance-fraud-denial-of-workers-comp-benefits/
