California Farm Labor Contractor Arraigned in Alleged $1.8M Workers’ Comp Fraud Scheme

Alfredo Casas, 62, of Stockton, California, has been arraigned on 15 felony counts of insurance fraud, grand theft and tax evasion.

Casas allegedly underreported payroll for his farm labor contracting business by over $1 million, resulting in a substantial loss to two insurance companies and the State Compensation Insurance Fund.

Casas was convicted on similar workers’ comp fraud charges in 2012. As part of that conviction, Casas’ business was found uninsurable by State Fund. However, Casas allegedly renamed and restructured his business using family members to serve as its officers, allowing him to obtain new workers’ compensation insurance policies.

On March 6, 2019, the California Department of Insurance received a referral from an insurance company alleging Casas’ business, AC Farm Ag Inc., was reporting no payroll to receive a reduced rate for workers’ comp insurance.

A joint investigation and search warrant service conducted by the CDI and San Joaquin County District Attorney’s Office reportedly discovered that Casas failed to disclose payroll, previous insurance claims, and policy cancellations and failed to provide correct job descriptions for his employees. Casas also reportedly operated for over two years as Casas Farm Services using forged certificates of insurance, forged Department of Industrial Relations Farm Labor Contractor permits, forged San Joaquin County Agriculture permits and documents he obtained from the state’s Labor and Workforce Development Agency by fraud.

Casas is scheduled to return to court on Feb. 10, 2022, for further arraignment. The case is being prosecuted by the San Joaquin County District Attorney’s Office.

Topics California Fraud Workers' Compensation Agribusiness Contractors