California Workers’ Comp Fraud Task Force Uncovers $1.6M in Unreported Payroll

California private security company owner Luis Burgos, 50, and his former business partner, Sohan Singh, 57, were 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 company underreported employee payroll by over $1.6 million.

Burgos was arrested last week at the Fresno County Superior Court while appearing 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.

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 in cash and only claiming a limited number of employees for payroll reporting purposes.

An investigation into B&R Private Security LLC reportedly revealed the company reported roughly $192,419 in employee payroll to their workers’ comp carrier over three years, buta forensic audit revealed B&R Private Security LLC actually had more than $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 cut workers’ comp premiums paid and $128,978 in premium owed to Central Valley Workers’ Compensation Fraud Task Force.

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.

The Fresno County District Attorney’s Office is prosecuting the case.

Topics California Fraud Workers' Compensation