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Archived Fraud Convictions 2015

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December 2015

12/17/15: Claimant Sentenced For Disability and Unemployment Insurance Fraud Based on Identity Theft and Forgery
  • County: San Mateo
  • Court Case Number: SC082920A
  • Amount Due to the EDD: $50,269.71 to the EDD and additional victims totaling $74,200.
  • Claimant: Kathryn Wright
  • Conviction: On 6/15/15, Wright pleaded guilty to all felony counts including; one count of section 530.5 of the Penal Code (PC), one count of section 2101 of the California Unemployment Insurance Code, and one count of section 487 PC.
  • Sentence: The claimant was sentenced to 32 months in prison and ordered to pay restitution to multiple victims.
  • Summary of Incident: While working in a human resources capacity for a private company, the claimant took the personal identifications of several employees and used them to file multiple Unemployment Insurance claims. In addition, the claimant used her position to claim health benefits through her employer to which she was not entitled. The claimant also forged the signature of two different medical practitioners in order to obtain Disability Insurance benefits to which she was not entitled. After pleading guilty the claimant fled the jurisdiction and filed a new forged medical certificate to continue receiving Disability Insurance benefits. The claimant was located in Texas and extradited to face sentencing in San Mateo County.
12/07/15: Claimant Sentenced For Disability Insurance Fraud Based On Identity Theft
  • County: Los Angeles
  • Court Case Number: BA431800
  • Amount Due to the EDD:  $45,783.86 (court ordered)
  • Claimant: Adelyn Grace Canlas
  • Conviction: The claimant pleaded guilty in Los Angeles Superior Court on 04/2/15 to all felony counts including; nine counts of section 2101(a) California Unemployment Insurance Code (CUIC); one count of section 2116(b) CUIC, two counts of section 530.5 of the Penal Code (PC), and two counts of section 487(a) PC.
  • Sentence: The claimant was sentenced to perform 300 hours of community service, serve five years of formal probation, and pay restitution to the EDD.
  • Summary of Incident: The case involves identity theft where the suspect used the true social security number of a victim to claim and receive Disability Insurance benefits to which she was not entitled.

November 2015

11/30/15: Claimant Convicted and Sentenced For Claiming Unemployment Insurance Benefits While Working
  • County: Ventura
  • Court Case Number: 2013013944
  • Restitution Ordered: $19,334 court ordered
  • Claimant: David Matthew Neve
  • Conviction: The claimant was convicted and ordered to pay $19,334 in restitution to the EDD, serve three years of summary probation, and perform 100 hours of community service including one day in custody.
  • Summary of Incident: The claimant failed to report work and earnings to the EDD while collecting Unemployment Insurance benefits.
11/19/15: Four Employers Ordered to Pay Restitution for Selling Paystubs of Fictitious Wages Used to File Unemployment and Disability Insurance Claims
  • County: Sutter
  • Court Case Number: 2:13-CR-00006-MCE
  • Amount Due to the EDD: $1,087,167.73 court ordered
  • Employers: Mohammad Nawaz Khan (Nawaz), Mohammad Adnan Khan (Adnan), Mohammad Shahbaz Khan (Shahbaz) and Iqila B. Khan (Iqila) DBA MZK Farm Labor Contractor
  • Convictions: The employers were convicted of Section 1341 United States Code Title 18 on the following dates: 12/4/14 (Nawaz), 11/12/14 (Adnan), 12/11/14 (Shahbaz), and 11/06/14 (Iqila)
  • Restitution Hearing: On 11/19/15, the employers were ordered to pay restitution jointly and severally with each other and 17 claimants who were prosecuted in the related cases.
  • Summary of Incident: The employers controlled a series of companies they reported to the EDD as farm labor contractors. The employers used the companies to sell fake paystubs to individuals and then report false wages. The employers instructed the purchasers how the fake paystubs could be used to fraudulently claim Unemployment and Disability Insurance benefits. Benefit claims filed based on false wages are being investigated in separate cases.
  • Mutual Investigation: This case is the product of an extensive investigation by the Federal Bureau of Investigation, the United States Department of Labor- Office of Inspector General, and the EDD Investigation Division.
11/18/15: Claimant Convicted and Sentenced For Disability Insurance Fraud
  • County: Santa Clara
  • Court Case Number: C1488836
  • Amount Due to the EDD: $23,445.23 (court ordered)
  • Claimant: Duana Cooke-Mills
  • Conviction: The claimant pleaded guilty to a misdemeanor charge of section 487 of the Penal Code and section 2101 of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay restitution, serve two years of summary probation, and to perform 250 hours of community service.
  • Summary of Incident: The claimant failed to report work and earnings while collecting Disability Insurance benefits.
11/05/15 and 11/19/15: Three Claimants Sentenced and Ordered to Pay Restitution for Filing Unemployment and Disability Insurance Claims Based on Fictitious Wages
  • County: Sutter
  • Court Case Number: 2:13-CR-00006-MCE
  • Summary of Incident: This case is related to a large fraud case involving employers who reported fictitious wages for non-existent employees for the purpose of establishing fraudulent claims. The claimants were among several violators who certified for Unemployment Insurance and/or Disability Insurance benefits that were paid from the fraudulent claims based on fictitious wages reported by the main suspects Nawaz, Adnan, Shahbaz, and Iqila (see the case above dated 11/19/15).
  • Claimant: Sukhwinder Kaur
  • Restitution Ordered: $51,825.41 (court ordered)
  • Conviction: The claimant was convicted on 07/30/15 of felony, Section 4; Title 18 United States Code.
  • Sentence: On 11/5/15, the claimant was sentenced under court order to pay restitution plus a $100 penalty assessment, and to serve 36 months of probation.
  • Claimant: Balkar Singh
  • Restitution Ordered: $37,060.54 (court ordered)
  • Conviction: The claimant was convicted on 05/21/15 of felony, Section 4; Title 18 United States Code.
  • Sentence: On 11/19/15, the claimant was sentenced under court order to pay restitution plus a $100 penalty assessment, and to serve 36 months of probation.
  • Claimant: Harvinder Kaur
  • Restitution Ordered: $50,606 (court ordered)
  • Conviction: The claimant was convicted on 05/21/15 of felony, Section 4; Title 18 United States Code.
  • Sentence: On 11/19/15, the claimant was sentenced under court order to pay restitution plus a $100 penalty assessment, and to serve 36 months of probation.
11/04/15: Claimant Sentenced to Prison for Filing Disability Insurance Claims Based on Forged Medical Certifications and Stolen Identification
  • County: United States District Court, Western District of Los Angeles
  • Court Case Number: 14-CR-00664
  • Amount Due to the EDD: $680,557,52 court ordered
  • Claimant: John Hoft
  • Conviction: On 1/29/15, John Hoft pled guilty in federal court to one count of Section 1349 of Title 18, United States Code.
  • Sentence: The claimant was sentenced to 33 months in prison, followed by three years of probation, and ordered to pay restitution with a second claimant, Michelle Armstrong, whose sentence is scheduled on 12/16/15.
  • Summary of Incident: The case involves two claimants (Hoft and Armstrong) who submitted numerous forged medical certifications containing the forged signatures of multiple licensed physicians. The claimants used the identification and wage credits of numerous individuals to file fraudulent claims without their knowledge or consent. Hoft is expected to sell his home with proceeds to be used for restitution purposes.
11/03/15: Employer Convicted and Ordered to Pay Restitution for Tax Evasion
  • County: Riverside
  • Court Case Number: RIF1203140
  • Amount Due to the EDD: $324,020.36, court ordered
  • Employer: Jeff Baron DBA Baron Services, Inc. (painting and construction contractor)
  • Conviction: The employer pleaded guilty to five felony charges as follows: Section 2118.5 of the California Unemployment Insurance Code, Section 11880 (a) of the California Insurance Code, and three counts of Section 111(a) of the California Penal Code.
  • Sentence: The employer was ordered to serve 180 hours of house arrest and 10 years formal probation and ordered to pay restitution of $324,020.36 to the EDD and $264,987.39 to the State Compensation Insurance Fund.
  • Summary of Incident: The employer failed to accurately report employees to a workers’ compensation insurance carrier and the EDD when performing public works projects.

October 2015

10/22/15: Claimant Convicted of Unemployment Insurance Fraud
  • County: Sacramento
  • Court Case Number: 2:12-CR-375 TLN
  • Amount Due to the EDD: Pending
  • Claimant: Gregory Bart Martin
  • Conviction: The claimant pleaded guilty in the United States Eastern District Court of California in Sacramento to four counts of mail fraud under Section 371 of the United States Code, Title 18.
  • Sentence: Date of sentence is pending.
  • Summary of Incident: The claimant took part in a scheme involving several perpetrators who conspired to defraud the State of California by creating fictitious employers and recruiting “employees” in order to fraudulently obtain Unemployment Insurance benefits. Martin concealed the scheme and acted as an enforcer by collecting payments from the claimants.
10/15/15: Claimant Convicted of Unemployment Insurance Fraud and Ordered to Pay Restitution to the EDD
  • County: Riverside
  • Court Case Number: RIF1502406
  • Amount Due to the EDD: $12,150.00
  • Claimant: Joshua Fox
  • Conviction and Sentence: One felony count of California Unemployment Insurance Code section 2101(A), three years of formal probation, 179 days to be served in the Work Release Program, one day in custody for booking, and restitution to be paid directly to the EDD.
  • Summary of Incident: The claimant failed to report his work and earnings while collecting Unemployment Insurance benefits.
10/13/15: Claimant Convicted of Unemployment Insurance Mail Fraud Scheme
  • County: Los Angeles
  • Court Case Number: CR15-292-DMG
  • Amount Due to the EDD: Pending
  • Claimant: Dena Peterman, AKA “Buttram”
  • Conviction: The claimant pleaded guilty in the United States Central District Court of California in Los Angeles to one count of conspiracy to commit mail fraud under United States Code, Title 18, section 37.
  • Sentence: The claimant remains in custody and is scheduled for sentencing on 01/6/16.
  • Summary of Incident: The claimant, with co-conspirators, stole and/or used identities to file Unemployment Insurance claims. The fraudulent claims were filed using false wages from fictitious employer registrations.
  • Press Release: The United States Attorney’s Central District Office issued a press release: High Desert Woman Pleads Guilty in Unemployment Insurance Fraud Scheme involving Bogus Movie Production Companies.

September 2015

09/28/15: Claimant Sentenced to Prison and Ordered to Pay Restitution for Fraudulent Unemployment Insurance Claims
  • Jurisdiction: Los Angeles County
  • Court Case Number: CR 14-544-GW
  • Amount Due to the EDD: $598,000 court ordered
  • Claimant: Carl Artis
  • Conviction: On 02/09/2015, the claimant pleaded guilty to United States Code violations of mail fraud, and submittal of fictitious or fraudulent claims.
  • Sentence: On 09/28/2015, the claimant was ordered to serve 80 months in federal prison, plus three years of supervised probation, and to pay restitution in the amount of $598,000.
  • Summary of Incident: From August 2010 through August 2014, the claimant operated a scheme where he registered fictitious companies with the EDD. He reported wage information for individuals whom he falsely claimed worked for the fictitious companies and then fraudulently applied for and received Unemployment Insurance benefits in the names of these individuals.
  • Press Release: A press release was issued by the Department of Justice, U.S. Attorney’s Office, Central District of California, including a statement by the EDD Director, Patrick W. Henning Jr.: Lancaster Man Sentenced to Nearly Seven Years in Prison for Defrauding State’s Unemployment Insurance System and Tax Fraud
09/24/15: Claimant Convicted and Sentenced For Unemployment Insurance Fraud
  • County: San Diego
  • Court Case Number: CD262929
  • Restitution ordered: $12,573.00 (court ordered)
  • Claimant: Douglas S. Bertics
  • Conviction: The claimant pleaded guilty to one felony count of section 2101(a) of the California Unemployment Insurance Code and was ordered to pay $12,573.00 restitution to the EDD, serve three years of summary probation, and to perform 100 hours of community service,
  • Summary of Incident: The claimant was employed and failed to report work and earnings while collecting Unemployment Insurance benefits.
09/24/15: Farm Labor Contractors Sentenced to Prison for Selling Fake Paystubs and Reporting False Wages
  • County: Sutter
  • Court Case Number: 2:12-CR-00180-MCE
  • Amount Due to the EDD: Pending a restitution hearing.
  • Employers: On 9/24/15, Mohammad Shahbaz Khan, Mohammad Adnan Khan, and Iqila Begum Khan were sentenced. On 10/01/15, Mohammad Nawaz Khan, was sentenced.
  • Conviction: During November and December 2014, four employers pleaded guilty to United States Code violations of mail fraud and conspiracy. The employers are Iqila Begum Khan, Mohammad Adnan Khan; Mohammad Nawaz Khan, and Mohammad Shahbaz .
  • Sentence: On 9/24/15, Iqila Begum Khan was sentenced to five years in prison; Mohammad Adnan Khan was sentenced to nine years in prison; Mohammad Shahbaz Khan was sentenced to seven years and three months in prison and a $50,000 fine. Each employer partner was also ordered to serve a term of three years supervised release following their prison terms. On 10/01/15, Mohammad Nawaz Khan was sentenced to twelve years and six months prison and three years of supervised release following the prison term. Mohammad Nawaz Khan was immediately taken into custody while in court.
  • Summary of Incident: The employers controlled a series of companies reported to the EDD as farm labor contractors. The employers used the companies to sell fake paystubs to individuals and then report false wages. The employers instructed the purchasers how the fake paystubs could be used to fraudulently claim Unemployment and Disability Insurance benefits. Benefit claims filed based on false wages are being investigated in separate cases.
  • Mutual Investigation: This case is the product of an extensive investigation by the EDD Investigation Division, the United States Department of Labor- Office of Inspector General, and the Federal Bureau of Investigation.
  • Press releases: The United States Attorney’s Office, Eastern District, issued two press releases related to this case:
09/23/15: Employment Tax Fraud Sentencing
  • County: San Bernardino
  • Court Case Number: INM1403080
  • Employer: Sacramento Morales-Garcia DBA G&G Private Recycling
  • Plea and Conviction: 09/23/2015
  • Conviction: Guilty pleas on 3/25/14 of Labor Code (LC) 3700.5(A) misdemeanor (failure to secure the payment of compensation), LC 226(A) misdemeanor (failure to provide wage statement to employee), California Unemployment Insurance Code (CUIC) 2117 misdemeanor (failure to file or report information to the EDD, and CUIC 2118 misdemeanor (failure to withhold and pay over tax).
  • Sentence: The employer was sentenced to three years’ summary probation and ordered to maintain full worker's compensation insurance coverage for all employees; pay all employees only by check; provide each employee with a pay stub showing gross wages, net pay itemizing all payroll deductions. The employer was also ordered to pay additional fines, penalty assessments, and costs of investigation.
  • Summary of Incident: The employer was not registered with the EDD and did not have a workers’ compensation insurance policy. The employer paid cash wages not reported to the EDD.
09/22/15: Employer Sentenced to Jail and Ordered to Pay Restitution for Tax Evasion
  • Jurisdiction: Alameda County
  • Court Case Number: 601628C
  • Amount Due to the EDD: $33,861 court ordered
  • Employer: Rong Liu DBA Acucare Oriental Massage
  • Conviction: The employer was convicted based on a no contest plea entered in July 2015 on four counts of the California Unemployment Insurance Code for willful to withhold and pay payroll taxes.
  • Sentence: The employer was sentenced in Alameda County Superior Court to 300 days in County jail and five years of probation. She was ordered to jointly and severally pay $33,861 in restitution to the EDD with a second defendant who was sentenced in July 2015 and reported on this site in July. The court ordered the employer to pay the restitution within three years from the date of sentencing and restricted from all massage parlors in California.
  • Summary of Incident: The employer was not registered with the EDD prior to the investigation and intentionally failed to file payroll tax returns to the EDD with the intent to evade taxes. The investigation determined the employer was operating a massage parlor where prostitution was occurring.
09/10/15: Employer and Sister Sentenced for Payroll Tax and Workers’ Compensation Fraud and Ordered to Pay Restitution
  • County: Sacramento
  • Court Case Number: 14F05983
  • Amount Due to the EDD: $110,462, court ordered
  • Employer: Michael George Mello Jr. DBA Green Valley Landscaping Service
  • Conviction: The employer pleaded no contest to felony workers’ compensation insurance fraud and felony tax evasion. His sister, Mary Catherine Rodriguez, pleaded no contest to misdemeanor tax evasion.
  • Sentence: The employer was sentenced to 30 days in county jail and five years’ probation He was also ordered to pay $144,672 in restitution to the insurance companies, and $110,462 to the EDD. Rodriguez was sentenced to three years’ probation, ordered to perform 50 hours of community service, and was ordered to pay restitution with her brother.
  • Summary of Incident: Between July 2010 and July 2013, the employer made false statements in their workers’ compensation insurance applications by significantly under-reporting the number of employees and payroll of their business, Green Valley Landscaping Service. They also failed to take required deductions from their employees’ wages and did not make required contributions to the Unemployment Insurance fund. As a result, they underpaid workers’ compensation insurance carriers $144,672 in premiums and the EDD $110,462 in employer taxes. The case was investigated by the California Department of Insurance Fraud Division, the EDD, and the Department of Industrial Relations.
09/02/15: Claimant Imprisoned for Disability Insurance Fraud and Ordered to Pay Restitution to the EDD
  • County: San Bernardino
  • Court Case Number: FSB1500769
  • Amount Due to the EDD: $15,553, court ordered
  • Claimant: Florene A. Faussette
  • Conviction: The claimant pleaded no contest to one misdemeanor count of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was sentenced to one day in jail and given credit for time served, was ordered to serve 36 months of summary probation, and ordered to pay full restitution of $15,553. 
  • Summary of Incident: The claimant filed a Disability Insurance claim and submitted altered medical extensions with a photocopy of her doctor’s signature in order to receive Disability Insurance benefits.

August 2015

08/28/15: Claimant Convicted of Unemployment Insurance Fraud and Ordered to Pay Full Restitution to the EDD
  • County: Placer County
  • Court Case Number: 62-128548
  • Amount Due to the EDD: $3,768
  • Claimant: Kendra Berger
  • Conviction: The claimant pleaded no contest in Superior Court to one felony count for violation of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: Pending
  • Summary of Incident: The claimant failed to report work and earnings while claiming Unemployment Insurance benefits.
08/27/15: Claimant Convicted of Disability Insurance Fraud and Ordered to Pay Full Restitution to the EDD
  • County: Monterey County Superior Court
  • Court Case Number: SS150979A
  • Amount Due to the EDD: $6,705
  • Claimant: Olivia Komura
  • Conviction: The claimant pleaded guilty to one misdemeanor count of Section 484(b) of the California Penal Code. 
  • Sentence: The claimant was sentenced to pay full restitution in the amount of $6,705.83. Additional sentencing requirements are pending.
  • Summary of Incident: The claimant failed to report work and wages while claiming Disability Insurance benefits.
08/26/15: Claimant Convicted of Felony Disability Insurance Fraud and Ordered to Pay Restitution
  • County: Alameda County Superior Court
  • Court Case Number: 5307793
  • Amount Due to the EDD: $48,707
  • Claimant: David Loville
  • Conviction: On 07/15/15, the claimant pleaded no contest to one felony count of Section 2101(a) of California Unemployment Insurance Code and one felony count of Section 487(a) of the California Penal Code.
  • Sentence: On 8/26/15, the claimant was sentenced to pay full restitution in the amount of $48,707.17 and ordered to serve five years of formal probation.
  • Summary of Incident: the claimant failed to report his work and wages while claiming Disability Insurance benefits.
08/21/15: Riverside County Employer Imprisoned for Insurance Fraud and Felony Tax Evasion
  • County: Riverside
  • Court Case Number: INF1300149
  • Amount Due to the EDD: $225,592
  • Employer: Michael Gregory Silverberg DBA United States Pools Corporation.
  • Conviction: On 08/21/15, the employer pleaded guilty to violations of Sections 11760(A) and 11880(A) of the California Insurance Code, and Sections 186.11(a)(2) and 12022.6(a)(1) of the California Penal Code.
  • Sentence: On 08/21/15, the employer was sentenced to state prison for a total term of 10 years with credit for time served of 105 days. He was ordered to pay restitution to the EDD, State Compensation Insurance Fund, State Board of Equalization, two additional private insurance companies, and additional court administration fees.
  • Summary of Incident: The Inland Empire Premium Fraud Task Force started investigating the employer after a complaint was made against him by a trade organization serving the California swimming pool industry. The Inland Empire Premium Fraud Task Force includes investigators from the Riverside and San Bernardino County District Attorney’s Offices, the California Department of Insurance, and the EDD. The employer misclassified or failed to report pool cleaning service technician employees and construction workers to avoid payroll taxes and workers’ compensation insurance premiums. The employer also failed to properly report the required sales tax due to the State Board of Equalization on an account with a local pool contractor supplier.
08/04/15: Southern California Employer Convicted of Felony Tax Evasion and Ordered to Pay Over $178,000 Restitution to the EDD
  • County: San Bernardino
  • Court Case Number: FVI1300540
  • Amount Due to the EDD: $178,000, court ordered
  • Employer: Bhagwant Singh, DBA A&J Shipping and Los Angeles Express Trucking in Fontana and Hesperia, California.
  • Conviction: The employer, pleaded no contest to the felony charge of payroll tax evasion in violation of Section 2117.5 of the California Unemployment Insurance Code.
  • Sentence: The employer was placed on formal probation for a period of three years, ordered to make restitution to the EDD in the amount of $178,000, and to comply with other terms and conditions of probation.
  • Summary of Incident: The investigation began after a number of complaints were received by the Labor Commissioner's Office alleging underpayment of wages by the employer to his employees. When it was discovered that Singh's businesses did not have the proper Workers' Compensation Insurance coverage for their employees, the investigation was taken over by the Workers' Compensation Fraud Unit of the San Bernardino County District Attorney’s Office. During the investigation, it was discovered that in addition to the allegations of underpaying workers and not having the required insurance coverage, the employer also failed to submit payroll information and proper deductions as required to the EDD.

July 2015

07/29/15: Corporate Officer Imprisoned for Tax Evasion and Ordered to Pay Unpaid Taxes
  • County: Tulare
  • Court Case Number: 12-002371
  • Amount Due to the EDD: $403,078, court ordered
  • Employer: Gregorio Jacobo DBA, Jacob’s Tree Specialist, Inc.
  • Conviction: The employer pleaded guilty to two misdemeanor counts of Section 2117.5 of the California Unemployment Insurance Code and Section 11760(a) of the California Insurance Code. The employer willfully filed fraudulent payroll tax returns with the intent to evade taxes and failed to accurately report employee wages to obtain a lower workers compensation insurance premium.
  • Sentence: The employer was sentenced in Tulare County Superior Court to summary probation for two years and was ordered to complete 100 hours of community service during probation. The employer was also ordered to pay restitution to the EDD in four installments.
  • Summary of Incident: The Tulare County District Attorney’s Office requested the EDD Investigation Division to conduct a joint criminal investigation on the business for payroll tax evasion and workers’ compensation insurance fraud. The company reported only approximately 25 percent of its true payroll to the EDD. An EDD investigation determined the company intentionally underreported approximately $14.7 million in payroll to the EDD by altering computer records of wages paid to employees.
07/15/15: Claimant Convicted of Disability Insurance Fraud
  • County: Alameda
  • Court Case Number: 5307793
  • Amount Due to the EDD: $48,707
  • Claimant: David Loville
  • Conviction: The claimant pleaded guilty to two felony counts charged in the Alameda County Superior Court including one count of California Unemployment Insurance Code section 2101(a) (false statements) and one count Penal Code 487 (grand theft). 
  • Summary of Incident: The claimant failed to report his work and earnings while collecting Disability Insurance benefits.
07/22/15: Employer Imprisoned and Ordered to Pay Almost $34K in Unpaid Taxes for Felony Tax Evasion
  • County: Alameda
  • Court Case Number: 601628B
  • Amount Due to the EDD: $33,861
  • Employer: Jimmy Lee and Rong Liu DBA Acucare Oriental Massage
  • Convictions: On 05/22/15, Jimmy Gong Lee pled to three felony counts of violating Section 2117.5 of the California Unemployment Insurance Code (CUIC), one felony count of Section 182/266(i) of the Penal Code (PC), and two felony counts of Section 67 PC. On 07/22/15, Rong Liu pled no contest to four felony counts of Section 2118.5 CUIC.  
  • Sentences: Lee agreed to serve a prison sentence of ten years and to pay $$33,861.25 in restitution to the EDD. Rong Liu was sentenced to 300 days county jail, was ordered to serve five years of probation, and to pay restitution to the EDD (jointly with Jimmy Lee) within three years from date of sentencing.
  • Summary of Incident: Investigation identified employees working for the employer who was not registered with the EDD. Other allegations investigated included bribery, prostitution, pimping, and pandering.
07/09/15: Employer Imprisoned and Ordered to Pay Over $23K in Unpaid Taxes for Felony Tax Evasion
  • County: Alameda
  • Court Case Number: 442181 or H53921
  • Amount Due to the EDD: $23,345.19
  • Employer: Elizabeth Ann Williams DBA Elizabeth Ann Williams Rentals
  • Sentence: The employer was sentenced in Alameda County Superior Court to eight months in county jail to be served in the electronic monitoring program and five years of formal probation. The employer was also ordered not to contract with government agencies and was ordered to pay restitution to the EDD.
  • Summary of Incident: The Alameda County District Attorney's office requested the EDD Investigation Division to conduct a joint criminal investigation against the employer for payroll tax evasion, workers’ compensation insurance fraud, and submission of false documents to be filed in a public office. An EDD investigation determined the employer intentionally failed to submit payroll tax returns to the EDD with intent to evade taxes. Alameda County instructed the employer to register with the EDD for county reimbursement to the employer of 80 percent of the wages paid to employees hired under a training program. The employer registered with the EDD and hired 16 employees but reported only two for the first quarter of 2010. The employer later submitted reimbursement requests to Alameda County for all 16 employees working from the first quarter of 2010 through third quarter of 2010. 

June 2015

06/29/15: Employer Imprisoned and Ordered to Pay Over $200K in Unpaid Taxes for Felony Tax Evasion
  • County: Monterey
  • Court Case Number: WCF120054
  • Amount Due to the EDD: $155,250
  • Employer: Juan Rosas DBA Juan the Builder & Associates, Inc.
  • Sentence: The employer was sentenced in Monterey County Superior Court to 40 days in county jail and six years and four months of formal probation based on a plea entered in April 2015 to three felony charges. The employer was ordered to pay full restitution in the amount of $155,250.03 to the EDD and $67,406.82 to the State Compensation Insurance Fund.
  • Summary of Incident: The employer failed to file payroll tax returns with intent to evade taxes, failed to accurately report employee wages to obtain a lower workers’ compensation insurance premium, and fraudulent use of a contractor’s license.
  • Press Release: The Monterey County District Attorney’s Office issued a press release: Claimant Sentenced to workers’ compensation insurance Fraud, Fraudulent Use of A Contractor’s License and Tax Evasion
06/26/15: Employer Imprisoned and Ordered to Pay $4 Million in Unpaid Taxes for Felony Tax Evasion
  • County: Los Angeles
  • Court Case Number: BA355055
  • Amount Due to the EDD: $4,398,208
  • Employer: Chan Yang DBA Bell Building Maintenance
  • Sentence: The employer was sentenced to eight years in prison and was ordered to pay restitution in the amount of $4,398,208.20 to the EDD.
  • Summary of Incident: The employer failed to report payroll taxes and employee wages to the EDD. The employer had knowledge of reporting requirements and knowingly misclassified workers to avoid paying taxes.
06/23/15: Claimant Convicted and Imprisoned for Unemployment Insurance Fraud
  • County: Solano
  • Court Case Number: VCR221005
  • Amount Due to the EDD: $5,628
  • Claimant: Zyrene Zuniga
  • Sentence: The claimant pled no contest to two felony counts of grand theft. She was sentenced to one day jail, four years’ probation, and ordered to pay restitution to the EDD.
  • Summary of Incident: The claimant is self-employed and failed to report work and earnings while collecting Unemployment Insurance benefits.
06/22/15: Employer Convicted and Sentenced for Felony Tax Evasion
  • County: Riverside
  • Court Case Number: SCD235499
  • Amount Due EDD: $57,488
  • Employer: Raul Rocha DBA R & R Roofing
  • Sentence: Two owner/operators each pleaded guilty on 04/17/15 to felony violations including insurance fraud, payroll tax evasion, and wage theft. They were granted probation to the court and ordered to pay over $300,000 in restitution to the EDD, and to the victim of wage theft. The restitution owed to the State Compensation Insurance Fund and the EDD is $57,488.
  • Summary of Incident: The investigation revealed that the company had been filing false payroll return for several years.
06/18/15: Claimant Imprisoned 180 Days and Ordered To Pay Full Restitution for Disability Insurance Fraud
  • County: San Joaquin
  • Court Case Number: 3SF130371
  • Amount Due to the EDD: $14,704
  • Claimant: Alex Vallejo
  • Conviction and Sentence: The claimant was sentenced to 180 days in jail, five years’ probation, and to pay full restitution in the amount of $14,704.85 to the EDD.
  • Summary of Incident: The claimant failed to report work and earnings while claiming Disability Insurance benefits.
06/15/15: Claimant Convicted of Felony Unemployment Insurance Fraud for Receiving Benefits Based on Stolen Identities
  • County: San Mateo
  • Court Case Number: 1309190005
  • Amount Due to the EDD: $50,269
  • Claimant: Kathryn Wright
  • Conviction: Section 2101 of the California Unemployment Insurance Code
  • Sentence: Hearing is continued for sentence.
  • Summary of Incident: The claimant used identities of other individuals to collect Unemployment Insurance benefits and forged medical certifications to collect Disability benefits to which she was not entitled.
06/01/15: Employer Convicted and Sentenced for Felony Tax Evasion
  • County: Alameda
  • Court Case Number: 452461
  • Amount Due EDD: $150,247
  • Employer: Oakland Century Buffet, Inc.
  • Sentence: The employer was sentenced in Alameda County Superior Court to five years of felony probation based on a plea entered in November 2014 to felony violations of willful failure to pay employer tax contributions.
  • Summary of Incident: The employer failed to report payroll taxes and misrepresented employees to evade taxes.
06/01/15: Claimant Imprisoned for One Year and Ordered to Pay Full Restitution for Disability Insurance Fraud
  • County: Los Angeles
  • Court Case Number: BA424755
  • Amount Due to the EDD: $40,360
  • Claimant: Maria Sandoval
  • Conviction and Sentence: On 03/17/15, the claimant pleaded guilty to felony violations of the California Unemployment Insurance Code for false statements, Penal Code violations of forgery 470 PC, and making false claims. The claimant was ordered to pay full restitution in the amount of $31,046.30 plus a 30 percent penalty of $9,313.89 to total $40,360.19, and to serve one year in the county jail with five years formal felony probation.
  • Summary of Incident: Claimant forged doctor’s signatures to claim Disability Insurance benefits.

May 2015

05/30/15: Claimant Convicted of Grand Theft and Imprisoned for 90 Days for Unemployment Insurance Fraud
  • County: Sacramento
  • Court Case Number: 13FO4131
  • Amount Due to the EDD: $14,004
  • Claimant: Trenton Dickenson
  • Sentence: The claimant was sentenced to 90 days jail, three years’ probation, and ordered to pay restitution in the amount of $14,004 to the EDD.
  • Summary of Incident: The claimant failed to report work and earnings while collecting Unemployment Insurance benefits.
05/21/15: Two Claimants Convicted of Unemployment and Disability Insurance Fraud Involving Multiple Suspects in a Major Fraud Conspiracy
  • County: Sutter
  • Court Case Number: 2:13-cr-00006-MCE
  • Amount Due EDD: The overpayments are $36,966 and $50,784.69, respectively for the claimants
  • Claimants: Harvinder Kaur and Balkar Singh
  • Conviction and Sentence Pending: The claimants pleaded guilty to superseding indictments charging mail fraud and conspiracy to defraud the United States. Sentence is pending on a date to be decided by the court.
  • Summary of Incident:  This case is related to a large fraud case involving employers who reported fictitious wages for non-existent employees for the purpose of establishing fraudulent claims.  The claimants were among several violators who certified for Unemployment and/or Disability Insurance benefits paid from the fraudulent claims.
05/15/15: Employer Sentenced to Prison for Tax Evasion and Wages Withheld From Immigrant Workers on Public Works Projects
  • County:  Orange
  • Court Case Number: 15CFO737
  • Amount Due to the EDD:  $140,000, court ordered
  • Employer: Saeed Kenari DBA Sunland Fire Protection, Inc.
  • Conviction:  On 5/15/15, Saeed Kenari pleaded guilty to the violation of Section 2118.5 of the California Unemployment Insurance Code, including four felony count violations for failure to collect and remit employment tax and filing a false or forged document. A second employer, Rina Arakekian, pleaded guilty to one felony count of conspiring to file a false or forged document. 
  • Sentence: The employer was sentenced to serve four years and eight months in state prison and was ordered to pay restitution to the EDD in the amount of $140,000. The employer bookkeeper was sentenced to 50 days in jail and three years formal probation.
  • Summary of Incident: Between October 2006 and December 2012, the employer operated Sunland Fire Protection (SFP) in Glendale and accepted several public works projects for SFP in both Los Angeles and Orange County. The employer took a portion of his workers’ wages on SFP’s public works projects from newly immigrated workers who were not familiar with the law. Kenari hired Arakelian as a bookkeeper and together they falsified SFP payroll records in order to conceal the hours worked by workers who were not paid their full wages. Kenari failed to report over one million dollars in payroll to the EDD.
05/14/15: Employer Imprisoned and Ordered to Pay Unpaid Taxes for Felony Tax Evasion
  • County: Alameda
  • Court Case Number: 176131
  • Amount Due EDD: $31,586
  • Employer: Ming Li DBA Ming’s Spa
  • Sentence: The employer was sentenced in Alameda County Superior Court to 14 days in county jail and five years formal probation based on a plea entered in April 2015 to one felony count Section 2118.5 of the California Unemployment Insurance Code. The employer was ordered to pay restitution on all counts including dismissed charges.
  • Summary of Incident: The employer failed to report payroll taxes and misrepresented employees to evade taxes.
05/13/15: Employer Imprisoned and Ordered to Pay Unpaid Taxes for Felony Tax Evasion
  • County: Alameda
  • Court Case Number: 176129
  • Amount Due EDD: The total tax liability amount is pending.
  • Employer: Maifang Yao DBA May’s Spa, May’s Body & Skin Care Spa LLC, May’s Body & Skin Care, and Mini Spa.
  • Sentence: The employer was sentenced to 42 days in county jail and five years formal probation based on a plea entered in April 2015 to one felony count of willful failure to collect and pay over Personal Income Tax.
  • Summary of Incident: The employer failed to report payroll taxes and misrepresented employees to evade taxes.
05/11/15: Claimant Imprisoned and Ordered to Pay Restitution for Unemployment Insurance Fraud
  • County: Fresno
  • Court Case Number: F14910412 FA
  • Amount Due to the EDD: $4,765
  • Claimant: Orlando Heredia
  • Sentence: The claimant was sentenced based on a plea in February 2015 to a felony violation of the California Unemployment Insurance Code making false statements. The sentence included 64 days in jail with 60 days stayed for referral to the Adult Offender Work Program. Formal probation was ordered for three years including payment of restitution in addition to court fees.
  • Summary of Incident: The claimant was certifying for Unemployment Insurance benefits while employed.
05/09/15: Employer Convicted for Felony Tax Evasion
  • County:Alameda
  • Court Case Number: 175606
  • Amount Due to the EDD: $139,614
  • Employer: Wenshi Ni DBA Chi Tai Massage, Qi Massage, Family Foot Spa, Massage Café, Oriental Healing Center, and Natina’s Spa
  • Conviction:  The employer pleaded guilty to one felony count of 2117.5 and will serve 5 years of probation. Sentencing will be scheduled on a future date.
  • Summary of Incident: The employer failed to report payroll taxes and misrepresented employees to evade taxes.