A brother-and-sister duo who run a Paramount construction company face embezzlement, fraud and theft charges. According to investigators, the pair participated in a $6M workers’ compensation fraud.
The brother pleaded no contest to one count each of workers’ compensation fraud, and grand theft of labor. The sister -the firm’s office manager – pleaded no contest to one count each of workers’ compensation fraud and insurance fraud. As part of their pleas, they admitted to embezzling more than $500,000 from the State Compensation Insurance Fund.
Investigators say that the pair altered employment records to reduce the firm’s workers’ compensation insurance premiums. In addition, the office manager both failed to report and concealed workers’ on-the-job injuries. Also, the pair underpaid workers assigned to a student housing renovation project at UCLA.
As part of the sentencing agreement, the pair will pay $6.3 million in restitution to the State Compensation Insurance Fund. The defendants will also reimburse the state for more than $5,000 in investigative costs. They will also pay $30,000 in fines, complete one year of supervised release and 500 hours of community service.
If the brother and sister meet the terms of the sentence agreement, the court will reduce their convictions to misdemeanors. If they fail to meet the terms of the sentence, the brother will face eight years in state prison. The sister could serve an incarceration term of nine years.
Paramount embezzlement lawyer
When you face charges for embezzling money in an employment setting, hire an experienced embezzlement lawyer like Robert Helfend. Mr. Helfend has more than 30 years of experience in criminal defense. In his more than 3 decades of practice, he has defended thousands of Californians. Mr. Helfend takes cases in Los Angeles County and throughout Southern California.
In most cases, embezzlement victims want first to be made whole. As the victim, a state agency also wants to discourage potential future schemes. This case demonstrates the effectiveness of non-incarceration style sentencing. The plea agreement required full restitution plus a reasonable fine amount. In addition, the court required a year of supervision and community service. The State Compensation Insurance Fund will receive the amount it should have been due. The defendants will also pay the cost of the state’s investigation. Additionally, the sentence did not disadvantage the state by requiring expensive or long-term incarceration.
An experienced criminal defense attorney will work with the court and the prosecutors to create a winnable situation for everyone. This is an important outcome for a no-contest plea.
Don’t rely on an inexperienced attorney when your freedom is at stake. Contact Robert Helfend or call toll-free at (800) 834-6434, (310) 456-3317, (818) 591-2809 or (805) 273-5611 for an immediate consultation on your Los Angeles County embezzlement case.
Photo Credit: Max and Dee Bernt, via Flickr.com