A California labor contractor was charged Dec. 9 with 15 felony counts of workers’ compensation fraud in an alleged $1.8 million scheme.
Alfredo Casas, owner of AC Farm Ag Inc., allegedly underreported payroll for his farm labor contracting business, resulting in financial losses to two insurance companies and the State Compensation Insurance Fund.
Casas is scheduled to appear in court Feb. 10, 2022, for arraignment, according to a California Department of Insurance news release.
As part of a prior conviction in 2012 for similar fraud charges, Casas’ business was found uninsurable by the State Compensation Insurance Fund, but Casas allegedly renamed and restructured his business using family members as officers.
This allegedly allowed him to obtain new workers’ compensation insurance policies.
The investigation
The state’s Department of Insurance received a referral March 6, 2019, from an insurance company alleging Casas was reporting no payroll so he could receive a reduced rate for workers’ compensation insurance.
By reporting no payroll, he paid a lower premium rate than he was entitled to receive.
An investigation found Casas failed to disclose payroll, previous insurance claims and policy cancellations and failed to provide correct job descriptions for his employees.
He also allegedly operated his business for more than two years as Casas Farm Services using various forged documents and documents acquired through fraudulent means.
