The California Department of Insurance reported that Alvin Shin Chen, 54, and Fiona Xilin Chen, 46, both of La Cañada Flintridge, were arrested at their home on April 28 by detectives from the department and charged with multiple felony counts, including Workers' Compensation insurance premium fraud.
The Chens, the owners of Metro Worldwide Inc. and Pacific Coast Distribution, operate a trucking company in Long Beach, and are accused of attempting to reduce their Workers' Compensation premiums by providing fraudulent information to their insurer regarding the number of their employees and what work those employees performed.
Detectives from the insurance department uncovered evidence indicating that the Chens paid cash to employee truck drivers to avoid reporting them to the insurer and to reduce their payroll tax obligation. Audits of the Chens' records found they underreported their payroll by more than $4.7 million. As a result, the Chens' allegedly cheated their insurer out of more than $1.6 million in Workers' Compensation premium.
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Rosalie Donlon
Rosalie Donlon is the editor in chief of ALM's insurance and tax publications, including NU Property & Casualty magazine and NU PropertyCasualty360.com. You can contact her at [email protected].
