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CA Janitorial Company Co-Owner Charged with Defrauding Workers’ Comp Insurance Carriers

June 4, 2018 - WorkCompWire

Riverside, CA – The co-owner of a Riverside-based janitorial company has been charged by the Riverside County District Attorney’s Office with defrauding five insurance carriers of $2.7 million.

Following a joint investigation by the DA’s Bureau of Investigation and the Inland Empire Premium Fraud Task Force, Patricia Morales of Riverside, has been charged with seven counts of workers’ compensation premium fraud as well as an aggravated white collar crime enhancement. Morales co-owned Riverside-based Mac & Mor Cleaning Services which had business contracts and employees in nine states.

Morales was responsible for handling the workers’ compensation insurance policies for the company’s more than 100 employees. She is charged with defrauding five insurance carriers of $2.7 million during the years 2012-2017 by falsely underreporting the company’s payroll. She is accused of forging state payroll records to match what she reported to insurance carriers.

Morales was arraigned on May 30, 2018, at the Hall of Justice in Riverside. She entered not guilty pleas to all counts and now has a felony settlement conference scheduled for June 5, 2018.

Morales’ case is being prosecuted by Deputy DA Matthew Roberts with the DA’s Insurance Fraud Team.

Source: Riverside DA’s Office

Filed Under: Industry News, Top Stories, Work Force & Human Resource News, Workers' Compensation

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