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It doesn’t pay to under report payroll - 02/03/11 DOI Commissioner announced the arrest of business owners and Stockton residents, for "Allegedly" failing to report estimated $15 million in payroll. The Husband & Wife own Cal Poultry Labor, Inc. and California Farm Services, Inc., as well as Bella's Bridal and Shadow Oaks Steakhouse.
The arrest warrants were for 13 Felony counts including insurance premium fraud, filing false reports with the (EDD) and failure to withhold or remit unemployment taxes. If convicted on all charges, each faces a maximum of 22 years in state prison, $910,000 in fines, and restitution. Their bail is set at $1,000,000.00.
Cal Poultry and California Farm were insured with Redwood Insurance Company and SCIF during the years in question.
It is estimated that the total amount of underreported payroll to the insurance companies could exceed $15 million.
Curious...What could be the legal ramifications to the insurance broker/agent who wrote their policies?