Fraud Case Against SD Company Yields Plea Deal
Fraud Case Against SD Company Yields Plea Deal
The owners of a San Diego employment agency that specialized in providing hotel workers pleaded guilty to insurance fraud and tax evasion.

According to California Department of Insurance investigators, the company underreported employment to avoid paying taxes and worker’s compensation insurance premiums. To disguise the fraud, the couple set up more than a dozen shell companies. A grand jury indicted the couple, as well as seven other people in the scheme.

The company provided contract housekeeping workers to high-end hotels in Southern California. According to investigators, the company retained insurance premiums and payroll taxes for more than 800 workers. Prosecutors pointed out that the hotel operators did not know of the fraud.

Employees said that they received payroll checks from the shell companies. They also did not receive overtime pay or worker’s compensation benefits for work-related injuries.

An informant revealed the scheme to federal investigators in 2010, but the grand jury did not indict the couple until 2015. The judge sentenced one company owner to more than 8 years in prison. The other owner received a 6 year sentence. In addition, the couple was ordered to pay more than $6.3 million in restitution.

Los Angeles Fraud Attorney


If you’re facing fraud charges in Los Angeles County, you need the assistance of an experienced fraud attorney. Robert Helfend is an aggressive criminal defense attorney with more than 30 years of courtroom defense experience.

Mr. Helfend works tirelessly to get charges against his clients reduced or dropped. That can be especially important in California, where felony convictions can trigger Three Strikes penalties.

Don’t rely on an inexperienced attorney or one who won’t fight for your freedom. 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 fraud case.

Photo Credit: Porto Bay Hotels & Resords, via Flickr.com

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