X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
"Businesses that illegally underreport payroll and employees create a competitive advantage that places honest businesses at risk," Insurance Commissioner Ricardo Lara said in a statement. "This joint investigation with Amador County levels the playing field, so honest employers have a chance to stay competitive and in the marketplace." (Credit: designer491/Shutterstock) “Businesses that illegally underreport payroll and employees create a competitive advantage that places honest businesses at risk,” Insurance Commissioner Ricardo Lara said in a statement. “This joint investigation with Amador County levels the playing field, so honest employers have a chance to stay competitive and in the marketplace.” (Credit: designer491/Shutterstock)

Michael Zendejas was sentenced to 180 hours of community service, three years formal probation and ordered to pay $944,718 in restitution after pleading no contest to insurance fraud for underreporting payroll by approximately $4.9 million that resulted in a $944,718 loss to his insurer, according to the California Department of Insurance.

As the owner and president of Trinity Personnel Inc., an employment agency that provides temporary workers, Zendejas obtained a workers’ compensation policy from State Compensation Insurance Fund (SCIF) in September 2014 through December 2016. SCIF performed an audit of the policy and found that Zendejas significantly underreported the company’s payroll and the number of employees in order to receive a lower workers’ compensation insurance premium.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

Denny Jacob

Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected]

More from this author

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.