Fresno, CA – The California Department of Insurance recently announced that private security company owner Luis Burgos and his former business partner, Sohan Singh, have been charged for their alleged involvement in a workers’ compensation insurance fraud scheme after an investigation by the Central Valley Workers’ Compensation Fraud Task Force found the private security company underreported employee payroll by over $1.6 million.
Burgos was arrested at the Fresno County Superior Court while appearing in court on an unrelated matter. Burgos was previously charged with insurance fraud for his involvement in an organized auto insurance fraud ring. Singh is currently at large and believed to be out of the country. Anyone with information related to the whereabouts of Singh are asked to contact Senior District Attorney Investigator Michael Ortiz at (559) 600-5072. The Fresno County District Attorney’s Office is prosecuting the case.
B&R Private Security LLC, based in Fresno, provided private armed and unarmed security guard services to the Central Valley. Between May 2018 and May 2021, B&R Private Security LLC held a workers’ compensation insurance policy through State Compensation Insurance Fund.
While conducting a separate criminal investigation, the California Department of Insurance received information that B&R Private Security LLC was paying employees their salary in cash and only claiming a limited number of employees for payroll reporting purposes.
An investigation into B&R Private Security LLC, led by the Fresno County District Attorney’s Office, revealed the company reported approximately $192,419 in employee payroll to their workers’ compensation insurance carrier over the course of three years; however, a forensic audit revealed B&R Private Security LLC actually had over $1.8 million in employee payroll for the same time period.
The total amount of unreported payroll identified was $1,670,417. The hiding of employee payroll resulted in the illegal reduction of workers’ compensation insurance premiums paid and $128,978 in premium owed to State Compensation Insurance Fund.
The Central Valley Workers’ Compensation Fraud Task Force is an inter-agency anti-fraud partnership with members from the California Department of Insurance, the California Employment Development Department, the California Franchise Tax Board, and the District Attorney’s Offices of Fresno County, Tulare County, Kings County, Kern County, Merced County, Madera County, and San Luis Obispo County.
Source: CDI