Fresno security company owners shaved $1.6 million in worker’s comp fraud, prosecutors say - Insurance News | InsuranceNewsNet

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April 14, 2023 Regulation News
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Fresno security company owners shaved $1.6 million in worker’s comp fraud, prosecutors say

Fresno Bee, The (CA)

The owners of a private security company in Fresno are facing criminal charges for allegedly making false statements to avoid paying the full cost of workers’ compensation insurance premiums.

Luis Burgos, 50, owner of B&R Private Security LLC, and his former business partner, Sohan Singh, 57, are accused by The Central Valley Workers’ Compensation Fraud Task Force of underreporting employee payroll by over $1.6 million.

The company provides private armed and unarmed security guard services.

An investigation into the security company, 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.

But a forensic audit found that B&R Private Security LLC actually had over $1.8 million in employee payroll for the same time period, according to the California Department of Insurance.

As a result of allegedly falsifying the total payroll, Burgos was shortchanging the workers’ compensation provider, the State Compensation Insurance Fund, by $128,978 in premiums.

Burgos was arrested Thursday. He was previously charged with insurance fraud for his involvement in an organized auto insurance fraud ring.

Singh is at large and is believed to be out of the country. Anyone with information about Singh’s whereabouts is asked to contact Senior District Attorney Investigator Michael Ortiz at 559-600-5072.

©2023 The Fresno Bee. Visit fresnobee.com. Distributed by Tribune Content Agency, LLC.

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