A California business owner was arraigned on several felony counts of workers’ comp fraud in a $210,000 payroll scheme.
Gamlet Abramian, the owner of three Los Angeles-area limousine companies, was arraigned June 13 following an investigation that revealed he allegedly underreported payroll at his business to save more than $210,000 in insurance premiums.
Abramian owns or is involved in the management of D&D Limo, Superior Enterprise and On Time Coach Executive, according to the California Department of Insurance.
Reported 0 payroll, employed up to 12 drivers
The investigation began after the state’s Public Utilities Commission licensing unit noticed Abramian reported he employed five to 12 drivers, but failed to have a workers’ compensation insurance policy.
Investigators found Abramian reported zero in employee payroll to his insurance company, allegedly in an attempt to save on premium costs. A search warrant served to banks dealing with the three limo companies showed the unreported payroll from June 2018 through September 2020.
The unreported payroll resulted in $212,667 of unpaid premiums to the insurance company.