The owners of a private security company in California are facing criminal charges for a $1.6 million workers’ compensation fraud scheme.
Luis Burgos and Sohan Singh, owners of B&R Private Security LLC, have been charged for underreporting employee payroll by more than $1.6 million to fraudulently lower their workers’ compensation insurance premiums.
An investigation conducted by the Central Valley Workers’ Compensation Fraud Task Force and Fresno County District Attorney’s Office revealed that the security company reported $192,419 in employee payroll to their workers’ compensation insurance carrier over the past three years.
A forensic audit of the company’s finances found that B&R actually had more than $1.8 million in employee payroll for the same time period, according to The Fresno Bee. This resulted in the company shorting the insurance provider, the State Compensation Insurance Fund, by $128,978 in premiums.
Burgos was arrested April 13. He was previously charged with insurance fraud in an organized auto insurance fraud ring.
Singh is still at large. He is believed to be out of the country.