The owner of several janitorial companies was arraigned on multiple felony counts of insurance fraud for allegedly underreporting employee wages to reduce workers’ compensation insurance premiums by more than $2.5 million.
Almirante Perez, owner of four California-based janitorial services companies – Capital Janitorial Services, Cal Best Service Group Inc., Southern Pacific Janitorial Group and United Pacific Contractors Inc. – was arraigned Oct. 22 and pleaded not guilty to all charges.
An investigation by the California Department of Insurance found Perez failed to report employees and wages to his workers’ compensation insurance carrier and the Employment Development Department (EDD).
Investigators discovered $1,982,597 in underreported premium fraud and $609,430 in payroll taxes owed to the EDD, according to a Department of Insurance news release.
Perez is facing three counts of tax evasion for failing to report the payroll taxes along with three counts of workers’ compensation insurance fraud.