Fraud of the Week

Premium Fraud – California

Amount – $2.5 million

The owner of an agricultural company and his daughter have been arraigned on multiple felony counts for underreporting payroll by $11 million dollars in order to reduce their insurance premium by $2.5 million. Between 2015 and 2019 the pair reported fabricated payroll reports. The discrepancy was discovered when the reports sent to the compensation fund were compared to the reports given to the Employee Development  Department.