Riverside, CA – A Riverside woman was recently arraigned on 52 felonies related to workers’ compensation insurance fraud that resulted in a loss of more than $540,000 to two insurance companies.
Joanne Trealoff is charged with providing a false statement to reduce workers’ compensation rates (Insurance Code section 11760 (A)) and failure to disclose facts regarding insurance benefits (Penal Code section 550 (B)(3)). Trealoff is the owner of Eclipse
Recreational Vehicles Inc, a manufacturer of toy haulers and travel trailers located in the city of Riverside.
Trealoff appeared in Riverside Superior Court on March 29, 2017, and entered not guilty pleas to all 52 counts. She now has a felony settlement conference scheduled for June 7, 2017, at 8:30 a.m. in Dept. 63 at the Hall of Justice in Riverside.
Two other people have been charged in this case but, as of this news release, had not been arrested subsequent to arrest warrants that have been issued. They are David Armando Torres, of Yucaipa; and Sylvia Leon, of Duarte. Torres is the owner of Employer Support Group, a workers’ compensation consulting firm located in Montclair, and Leon is an employee of that business. Torres and Leon have each been charged with 51 felonies, 50 counts of failure to disclose facts regarding insurance benefits (Penal Code section 550 (B)(3)) and one count of unlawful transaction of insurance business (Insurance Code section 700)
Based on the investigation in this case, it is alleged that Trealoff misclassified an estimated 15 to 20 percent of the approximately 200 employees at Eclipse and failed to report more than 50 injuries to employees. The charged crimes happened over the years 2012 to 2016. It is alleged that Torres and Leon, through their company, assisted Trealoff in not lawfully reporting industrial injuries to insurance companies.
The charged crimes resulted in more than $540,000 in losses to Everest National Insurance Company and Security National Insurance Company.
The case was investigated by the Inland Empire Premium Fraud Task Force composed of investigators from the California Department of Insurance, the Riverside County DA’s Office, the San Bernardino DA’s Office, the state Employment Development Department and the state
Franchise Tax Board.
The case, RIF1700031, is being prosecuted by Deputy District Attorney Courtney Breaux of the DA’s Insurance Fraud Team.
Source: Riverside DA’s Office