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Archived Fraud Convictions 2016

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December 2016

12/21/16: Employers Convicted and Sentenced for Tax Evasion
  • County: Sacramento
  • Court Case Numbers: 16FE021743 for Rashed, and 16FE021745 for Tashta (franchisee employers)
  • Amount Due to the EDD: $11,169
  • Employers (multiple): 4G PCS Inc.; 4G SWS Inc.; Loco Unlimited Inc.; SNRH Ultimate Wireless; N & S Brothers Inc.; Arzak Inc.; Unlimited R Us, Inc.; and Arzak Ana, Inc.
  • Convictions: On 11/29/16, Bilal Rashed pleaded no contest to one felony count one of Section 7152(a) of the California Revenue and Taxation Code. On 12/21/16, Samer Tashta pleaded no contest to one felony count of California Revenue and Taxation Code Section 7152(a).
  • Sentences: Rashed was sentenced to five years of formal probation and was ordered to pay $5,847 in restitution to the EDD and $410,131 in restitution to the Board of Equalization (BOE). Tashta was sentenced to five years of formal probation and was ordered to pay $5,322 in restitution to the EDD, and $311,974 in restitution to the BOE.
  • Summary of Incident: The EDD received a request for assistance from the Franchise Tax Board (FTB) regarding the owners of various Metro PCS franchise employers who appeared to be failing to report corporate income tax to the FTB as well as sales tax to the BOE. The EDD assisted with the investigation as a part of the Tax Recovery and Criminal Enforcement Task Force (TRaCE). The investigation revealed the employers failed to report the employees’ commissions and corporate officer wages to the EDD. The Deputy Attorney General’s Office secured $11,169 in restitution to the EDD as a part of the plea agreements.
12/19/16: Claimant Convicted and Sentenced for Disability Insurance Fraud
  • County/District: Federal Court Eastern District, Sacramento
  • Court Case Number: 2:14CR00304-3
  • Amount Due to the EDD: $3,614
  • Claimant: Timnesha Wilson
  • Conviction: The claimant pleaded no contest to misdemeanor Title 18 United States Code § 3 (accessory after the fact to aggravated identity theft) and 1028(A) (aggravated identity theft).
  • Sentence: The claimant was ordered to pay restitution in the amount of $3,614 and to serve 24 months of probation.
  • Summary of Incident: The claimant was a co-conspirator in a large Disability Insurance fraud scheme involving the use of stolen identities.
12/19/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud
  • County: Tuolumne
  • Court Case Number: CRF51071
  • Amount Due to the EDD: $12,150
  • Claimant: Mary Brown
  • Conviction: The claimant pleaded no contest to misdemeanor Section 2101(a) of the California Unemployment Insurance Code. Sentence is scheduled on a future date.
  • Summary of Incident: The claimant was employed and failed to report her work and earnings to the EDD while collecting Unemployment Insurance benefits.
12/16/16: Employer Jailed and Ordered to Pay Restitution for Tax Evasion
  • County: Riverside
  • Court Case Number: SWF1600246
  • Amount Due to the EDD: $373,001
  • Employer: Frank Duran DBA Bucketeer Maintenance, Inc. (AKA Frank’s Cleaning Service, Inc.)
  • Conviction: On 12/16/16, the employer pleaded guilty to two felony counts of Section 11760(A) of the Insurance Code, one felony count of Section 2118.5 of the California Unemployment Insurance Code, and Section 186.11 (a)(2) of the Penal Code.
  • Sentence: The employer was granted formal probation for a period of 36 months and was committed to the custody of the Riverside County Sheriff for 120 days; 119 days to be served in a work release program. The employer was ordered to pay $373,001 in restitution to the EDD.
  • Summary of Incident: The employer operated a janitorial service from 2002 to 2013 DBA Bucketeer Maintenance, Inc. During December 2013, the employer dissolved Bucketeer Maintenance, Inc. and established a new corporation DBA Frank’s Cleaning Service, Inc. An EDD audit identified $6,795,556 of unreported wages from the period beginning 01/01/07 and ending 09/30/15.
12/13/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud
  • County: Los Angeles
  • Court Case Number: NA104704
  • Amount Due to the EDD: $16,610
  • Claimant: Tanika Turner
  • Conviction: The claimant pleaded no contest to two felony counts of Section 550(b) (3) of the Penal Code.
  • Sentence: The claimant was ordered to pay full restitution of $16,610 to the EDD, serve five years formal probation, and perform 60 days of work for Caltrans.
  • Summary of Incident: The claimant was employed and failed to report her work and earnings to the EDD while collecting Unemployment Insurance benefits.
12/7/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud
  • County: San Bernardino County, Rancho Cucamonga
  • Court Case Number: FWV1402077
  • Amount Due to the EDD: $21,163
  • Claimant: Michael Rodriguez
  • Conviction: The claimant pleaded guilty to one felony count of Section 2101 (a) of the California Unemployment Insurance Code
  • Sentence: The claimant was ordered to pay $21,163 in restitution to the EDD, and serve 36 months of formal probation.
  • Summary of Incident: The claimant was employed and failed to his report work and earnings to the EDD while collecting Unemployment Insurance benefits.
12/7/16: Employer Convicted of Workers Compensation Insurance Fraud and Employment Tax Evasion
  • County: Tehama
  • Court Case Number: NCR95441 and NCR95442
  • Amount Due to the EDD: $81,378
  • Employer: Trinidad Escareno and Isabel Escareno DBA Escareno Reforestation
  • Conviction: Isabel Escareno pleaded no contest to two felony counts of Section 11880(a) of the Insurance Code and Section 2101.5 of the California Unemployment Insurance Code. A restitution hearing is scheduled for 02/16/17.
  • Summary of Incident: The employers were paying employees and withholding payroll taxes but did not report the wages or pay the taxes to the EDD and did not report the wages and pay the required premium to the State Compensation Insurance Fund (SCIF). This was a joint investigation between the EDD, SCIF, and the Tehama County District Attorney’s Office with assistance from the California Department of Insurance.
12/01/16: Employer Convicted of Workers Compensation Insurance Fraud and Employment Tax Evasion
  • County: Los Angeles
  • Court Case Number: BA435018
  • Amount Due to the EDD: $2,869,176
  • Employer: Sung Hyun and Caroline Sung Choi Kim, corporate executive officers of Meriko, Inc.; SF Apparel Inc. (successor)
  • Conviction: Sung Hyun Kim and Certified Public Accountant (CPA) Jae Young Kim, each pleaded no contest to two counts of Workers’ Compensation Insurance fraud, Section 11880(a) of the California Insurance Code. Caroline Sung Choi, pleaded to two counts of failure to pay state payroll taxes under Sections 2117.5 and 2118.5 of the California Unemployment Insurance Code. Sentencing is scheduled on 01/24/17.
  • Summary of Incident: The EDD Investigation Division participated in a joint investigation with the Los Angeles County District Attorney’s Office and the California Department of Insurance. The employers and CPA had been misclassifying employees and not reporting their true payroll to the EDD and their Workers’ Compensation Insurance carrier.
  • Media Release: The Los Angeles County District Attorney’s Office issued media releases on 12/01/16 describing the conviction and, previously, on 04/16/15, describing the arrest of the corporate officers and the CPA.
    http://da.co.la.ca.us/media/news/trio-pleads-38-million-workers-compensation-fraud-case
    http://www.insurance.ca.gov/0400-news/0100-press-releases/2015/release042-15.cfm

November 2016

11/30/16: Claimant Convicted and Jailed for Unemployment Insurance Fraud Working Violations
  • County: Sacramento
  • Court Case Number: 13F06666
  • Amount Due to the EDD: $24,865
  • Claimant: Ronnie Coleman
  • Conviction: The claimant pleaded no contest to misdemeanor Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $24,865 in restitution to the EDD, serve 90 days in jail, and serve 36 months of summary probation.
  • Summary of Incident: The defendant was employed and failed to report work and earnings to the EDD while collecting Unemployment Insurance benefits.
11/30/16: Claimant Convicted and Sentenced for Unemployment and Disability Insurance Fraud Working Violations
  • County: Los Angeles
  • Court Case Number: NA103166
  • Amount Due to the EDD: $77,810
  • Claimant: Jamilah Leah Mustafa (AKA Mustafu)
  • Conviction: The claimant pleaded nolo contendere to three felony counts of Section 118(a) of the Penal Code.
  • Sentence: Five years formal probation, four years jail suspended sentence, and ordered to pay $1,300 per month to the EDD through the probation department for the duration of probation.
  • Summary of Incident: The claimant used multiple social security numbers while working for various employers and failed to report her work and earnings while collecting benefits from multiple Unemployment and Disability Insurance claims.
11/16/16: Claimant Convicted and Jailed for Unemployment Insurance Fraud Working Violations
  • County: Sacramento
  • Court Case Number: 16FE020396
  • Amount Due to the EDD: $5,167
  • Claimant: Marcus Favila
  • Conviction: The claimant pleaded no contest to misdemeanor Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The defendant was ordered to pay $5,167 in restitution to the EDD, serve 45 days in jail, and 36 months of summary probation.
  • Summary of Incident: The claimant was employed and failed to report his work and earnings to the EDD while collecting Unemployment Insurance benefits.
11/14/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud Working Violations
  • County: San Diego
  • Court Case Number: CD267567
  • Amount Due to the EDD: $11,800
  • Claimant: Rezene G. Michael
  • Conviction: The claimant pleaded no contest to misdemeanor Section 532(a) of the Penal Code.
  • Sentence: Three years of summary probation, one day in jail, and restitution of $11,800 which has been paid in full to the EDD.
  • Summary of Incident: The claimant failed to report his work and earnings while certifying for Unemployment Insurance Benefits.
11/08/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud Working Violations
  • County: Los Angeles
  • Court Case Number: KA113239
  • Amount Due to the EDD: $11,700
  • Claimant: David R. Fish
  • Conviction: The claimant pleaded nolo contendere to felony Section 487(a) of the Penal Code.
  • Sentence: Three years of formal probation, 60 days of community service, and restitution to be paid to the EDD through the probation department.
  • Summary of Incident: The claimant failed to report his work and earnings while certifying for Unemployment Insurance Benefits.
11/01/16: Claimant Jailed and Ordered to Pay Restitution for Disability Insurance Fraud
  • County: Stanislaus
  • Court Case Number: 1454769
  • Amount Due to the EDD: $46,640
  • Claimant: Michelle Peterson
  • Conviction: The claimant pleaded no contest to felony Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was sentenced to serve 180 days jail and three years formal probation and was ordered to pay restitution in the amount of $44,640.
  • Summary of Incident: The claimant was employed and failed to report her work and earnings to the EDD while collecting Disability Insurance benefits.

October 2016

10/20/16: Claimant Convicted and Ordered to Pay Restitution for Unemployment Insurance Fraud
  • County: Riverside
  • Court Case Number: SWF150060
  • Amount Due to the EDD: $11,378
  • Claimant: Allen J. Keimig
  • Conviction: The claimant pleaded guilty to misdemeanor Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $11,378 in restitution to the EDD and to serve 36 months of summary probation.
  • Summary of Incident: The claimant was employed and failed to report work and earnings to the EDD while collecting Unemployment Insurance benefits.
10/20/16: Employer Sentenced to Jail for Employment Tax Fraud and Restitution to be Ordered
  • County: Sacramento
  • Court Case Number: 5F06529
  • Amount Due to the EDD: $46,071
  • Employer: Fumeei Nikko Wu DBA The Old Brewery LLC
  • Conviction: On 07/28/16, the employer pleaded no contest to one felony count each of California Unemployment Insurance Code Sections 2101.5, 2106, 2108, 2117.5, and 2118.5.
  • Sentence: On 10/20/16, the employer was sentenced to five years of formal probation and 37 days in county jail. A restitution hearing is scheduled for 12/15/16 to determine the final restitution amount due to the EDD, including penalties and interest.
  • Summary of Incident: This is an investigation by the Tax Recovery and Criminal Enforcement Task Force in which the EDD is a member. Investigation revealed the employer failed to report all of her employees and their wages to the EDD. An audit identified a total of $578,659 in wages that were not reported to the EDD from 07/01/11 through 09/30/13.
10/18/16: Claimant Convicted and Sentenced to Jail and Ordered to Pay Restitution for Disability Insurance Fraud
  • County: Riverside
  • Court Case Number: RIF1601822
  • Amount Due to the EDD: $53,930
  • Claimant: Lisa Rosales
  • Conviction: One felony count of Section 2101 of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay full restitution to the EDD, which she paid in court. She was sentenced to 150 days in jail ordered to serve three years of probation. The felony conviction will be reduced to misdemeanor if the claimant meets all sentencing conditions after one year.
  • Summary of Incident: The claimant failed to report her work and earnings while she collected benefits during five Paid Family Leave claims and two Disability Insurance claims.
10/11/16: Employer Sentenced to Jail for Tax Evasion and Failing to Pay Employees Prevailing Wage for Work Performed on Two Public Works Contracts
  • County: Orange
  • Court Case Number: 13CF3627
  • Amount Due to the EDD: $31,161
  • Employer: Shamseddin Hashemi-Mousavi DBA AAA HVAC, Inc.
  • Conviction: The employer was previously convicted on 10/07/15, of nine counts of violating Section 2118.5 of the California Unemployment Insurance Code. The remaining counts, out of a total of 37, included violations of taking and receiving a portion of worker’s wage on public works, attempted taking and receiving a portion of worker’s wage on public works, forgery, recording false and forged instruments, and willful failure to pay tax.
  • Sentence: The employer was sentenced to 365 days in county jail and was ordered to serve five years formal probation. Final restitution for all counts will be determined during a future hearing.
  • Summary of Incident: The employer willfully failed to pay taxes to the EDD in addition to the other violations charged.
  • Press Release: The Orange County District Attorney’s Office issued a press release, dated October 11, 2016:
    http://orangecountyda.org/civica/press/display.asp?layout=2&Entry=4947
10/03/16: Claimant Convicted and Ordered to Pay Restitution for Disability Insurance Fraud
  • County: San Joaquin
  • Court Case Number: CR-2015-16527
  • Amount Due to the EDD: $29,583
  • Claimant: William Lara
  • Conviction: The claimant pleaded no contest to one count Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $29,583 in restitution to the EDD, to serve three years of summary probation, and to perform 500 hours of community service.
  • Summary of Incident: The claimant failed to report his work and earnings while collecting Disability Insurance benefits.

September 2016

09/26/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud Working Violations Using Two Social Security Account Numbers
  • County: San Bernardino
  • Court Case Number: 16CR-013778
  • Amount Due to the EDD: $18,316
  • Claimant: Edward Franklin Kline III
  • Conviction: Section 2101(a) of the California Unemployment Insurance Code as a misdemeanor.
  • Sentence: The claimant paid full restitution at the conviction hearing and no sentence was pronounced.
  • Summary of Incident: The claimant failed to report his work and earnings under two separate social security account numbers while certifying for and collecting Unemployment Insurance benefits.
09/15/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud
  • County: Los Angeles
  • Court Case Number: BA446824
  • Amount Due to the EDD: $47,080
  • Claimant: Katesha L London
  • Conviction: Two felony counts of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $47,080 in restitution to the EDD, serve five years formal probation, perform 60 days of community service, and is prohibited from filing for Unemployment Insurance benefits until 05/20/17. 
  • Summary of Incident: The claimant failed to report her work and earnings while certifying for Unemployment Insurance benefits.
09/08/16: Claimant Convicted and Sentenced for Submitting Forged Certifications to Claim Disability Insurance Benefits
  • County: Alameda
  • Court Case Number: 450421
  • Amount Due to the EDD: $8,439
  • Claimant: Clonge Rafus
  • Conviction: The claimant was convicted of one misdemeanor count of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: Restitution was ordered in the amount of $8,439. 
  • Summary of Incident: The claimant submitted forged medical certifications while certifying for Disability Insurance benefits.

August 2016

08/25/16: Claimant Convicted for Disability Insurance Fraud
  • County:  Los Angeles
  • Court Case Number: BA443207
  • Amount Due to the EDD: $21,837
  • Claimant: Crystal Jordan
  • Conviction: The claimant was convicted of one felony count of Section 2101(a) of the California Unemployment Insurance Code and was ordered to appear in court on 03/06/17 for probation and sentencing.
  • Summary of Incident: The claimant failed to report her work and earnings while certifying for Disability Insurance benefits.
08/22/16: Claimant Convicted and Ordered To Pay Restitution for Unemployment Insurance Fraud
  • County:  Los Angeles
  • Court Case Number: BA442927
  • Amount Due to the EDD: $17,987, court ordered
  • Claimant: Sharon M. Cluff
  • Conviction: The claimant was convicted of misdemeanor Section 2101 of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $17,987 in restitution to the EDD and serve 36 months of summary probation.
  • Summary of Incident: The claimant failed to report her work and earnings while certifying for Unemployment Insurance benefits.
08/08/16: Defendant Convicted for Mail Fraud Associated with False Employer Registration
  • County:  Sacramento
  • Court Case Number: 2:12-cr-375 TLN
  • Amount Due to the EDD: Employer’s portion in conspiracy will be determined at the time of sentence.
  • Defendant: Andre Walters
  • Conviction: The defendant was convicted of four counts of Section 1341, Title 18 of the United States Code.
  • Summary of Incident: The defendant coordinated a scheme to register fictitious businesses with the EDD. He recruited individuals to pose as employees and file Unemployment Insurance claims to collect benefits based on false wage credits. Walters was the sixth individual to be convicted for participating in this fraud scheme.
  • Press Release: The U.S. Attorney’s Office issued a press release: https://www.justice.gov/usao-edca/pr/sacramento-jury-convicts-southern-california-man-5m-unemployment-benefits-fraud-scheme.
08/01/16: Claimant Convicted and Ordered To Pay Restitution for Unemployment Insurance Fraud
  • County:  San Bernardino
  • Court Case Number: FSB1503265
  • Amount Due to the EDD: $22,812, court ordered
  • Claimant: John M. Tyler
  • Conviction: The claimant was convicted of misdemeanor Section 2101 of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $22,812 in restitution to the EDD and serve 36 months of summary probation.
  • Summary of Incident: The claimant failed to report his work and earnings while certifying for Unemployment Insurance benefits.

July 2016

07/28/16: Employer Convicted for Tax Evasion
  • County: Sacramento
  • Court Case Number: 5F06529
  • Amount Due to the EDD: $46,071
  • Employer: Fumeei Nikko Wu DBA The Old Brewery LLC
  • Conviction: The employer pleaded no contest to one felony count each of the Sections 2101.5, 2106, 2108, 2117.5, and 2118.5 of the California Unemployment Insurance Code. Sentencing is scheduled for 10/20/16.
  • Summary of Incident: The employer failed to report all of her employees and their wages to the EDD. An audit identified a total of $578,659 in wages that were not reported to the EDD for the period between 07/01/11 and 09/30/13.
07/21/16: Employer Convicted for Tax Evasion and Insurance Fraud
  • County: Santa Barbara
  • Court Case Number: 1472724
  • Amount Due to the EDD: $65,164 court ordered
  • Employer: Alberto Rodriguez DBA United Seal Coating and Slurry Seal, Inc.
  • Conviction: The employer pleaded guilty to charges as follows:  Section 1779 of the Labor Code, Section 2117.5 of the California Unemployment Insurance Code, Section 1871.4 of the Insurance Code, and Section 19705(a)(1) of the Revenue and Taxation Code. Sentencing is scheduled for 01/18/17.
  • Summary of Incident: The employer failed to report all of his employees and their wages to the EDD. An audit identified $2,029,758 in unreported wages paid to employees between 04/01/13 and 12/31/14.
  • Press Release: The Santa Barbara County District Attorney’s Office issued a press release, dated July 20, 2016: https://www.countyofsb.org/da/msm_county/documents/AlbertoRodriguezpr.pdf 
07/14/16: Claimant Convicted and Ordered To Pay Restitution for Unemployment Insurance Fraud
  • County: San Diego
  • Court Case Number: CD243450
  • Amount Due to the EDD: $18,450, court ordered
  • Claimant: Carolyn J. Vance
  • Conviction: The claimant was convicted of misdemeanor Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $18,450 in restitution to the EDD, and serve 36 months of summary probation.
  • Summary of Incident: The claimant failed to report her work and earnings while certifying for Unemployment Insurance benefits.
07/12/16: Claimant Convicted and Sentenced for Disability Insurance Fraud
  • County: Sacramento
  • Court Case Number: 15F01759
  • Amount Due to the EDD: $9,045
  • Claimant: Rosalind Anderson
  • Conviction: The claimant pleaded guilty to one felony count of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $9,045 in restitution to the EDD, serve five years formal probation, and work for 90 days in a county jail work project.
  • Summary of Incident: The claimant failed to report her work and earnings while collecting Disability Insurance benefits.
07/11/16: Claimant Convicted and Sentenced for Submitting Forged Certifications to Claim Disability Insurance Benefits
  • County: Solano
  • Court Case Number: FCR313665
  • Amount Due to the EDD: $55,473
  • Claimant: Angela Washington
  • Conviction: The claimant pleaded no contest to three felony counts for violation of Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $55,473 in restitution to the EDD, serve three years formal probation, and 90 days in county jail.
  • Summary of Incident: The claimant submitted forged medical certification documents to collect Disability Insurance benefits. 
07/11/16: Claimant Convicted of Disability Insurance Fraud
  • County: Alameda
  • Court Case Number: 464170
  • Amount Due to the EDD: $28,300
  • Claimant: John Landers Jr.
  • Conviction: The claimant pleaded no contest to one felony count of Section 2101(a) of the California Unemployment Insurance Code and one felony count of Section 487 of the Penal Code.
  • Sentence: Sentencing is scheduled for 09/06/16.
  • Summary of Incident: The claimant failed to report his work and earnings while collecting Disability Insurance Benefits.
07/07/16: Employer Convicted For Tax Evasion and Insurance Fraud
  • County: Santa Clara
  • Court Case Number: C1353903
  • Amount Due to the EDD: $96,326
  • Employer: Adrienne McGrath DBA Mitchell Development
  • Conviction: The employer pleaded no contest to one misdemeanor charge of Section 11760(a) of the California Insurance Code and one felony charge of Section 2110.3 of the California Unemployment Insurance Code. The employer paid full restitution during the proceedings. Sentencing is scheduled for 09/01/16.
  • Summary of Incident: The employer underreported wages paid to employees of his construction company.  

June 2016

06/28/16: Claimant Convicted and Sentenced For Unemployment Insurance Fraud Based On Identity Theft
  • County: Santa Clara
  • Court Case Number: C1478233
  • Amount Due to the EDD: $23,198
  • Claimant: Baldwinder Singh
  • Charges: Section 2101(a) of the California Unemployment Insurance Code (CUIC) and Section 487 of the Penal Code (PC).
  • Conviction: The claimant pleaded guilty to five felony counts of Section 2101(a) of the CUIC and Sections 487 and 529 of the PC.
  • Sentence: The claimant was ordered to pay $23,198 in restitution to the EDD and serve 120 months of formal probation including nine months of electronic monitoring.
  • Summary of Incident: The claimant used the identity of another person to claim Unemployment Insurance benefits while he was working and earning wages.
06/23/16: Claimant Convicted and Sentenced for Unemployment Insurance Fraud Working Violations
  • County: Santa Clara
  • Court Case Number: C1527060
  • Amount Due to the EDD: $10,890
  • Claimant: Nathan Saindon
  • Conviction: The claimant pled no contest to one misdemeanor count of Section 2101 CUIC.
  • Sentence: The claimant was ordered to pay $10,890 in restitution to the EDD and serve two years’ summary probation. Payment of restitution was made in the amount of $10,840 to the court on the same day. 
  • Summary of Incident: The claimant failed to report his work and earnings while collecting Unemployment Insurance benefits.
06/22/16: Employer Convicted of Felony Charges and Ordered to Pay Restitution for Tax Evasion and Insurance Fraud
  • County: Los Angeles
  • Court Case Number: BA409834
  • Amount Due to the EDD: $109,168
  • Employer: Cresencio I. Perez DBA CP Construction
  • Conviction: The employer pleaded guilty to felony charges of Section 11880(a) California Insurance Code and Section 2117.5 of the California Unemployment Insurance Code.
  • Sentence: The court ordered the employer to pay full restitution to the EDD.
  • Summary of Incident: The employer is a construction company in Los Angeles that was making cash payments to unreported workers to evade employment tax and Workers’ Compensation Insurance payments.
06/09/16: Claimant Convicted and Sentenced For Unemployment Insurance Working Violations
  • County: San Diego
  • Court Case Number: CD266020
  • Amount Due to the EDD: $10,526
  • Claimant: Michael Elliot
  • Conviction: The claimant pled guilty to misdemeanor Section 2101(a) of the California Unemployment Insurance Code.
  • Sentence: The claimant was ordered to pay $10,526 in restitution to the EDD and serve 36 months summary probation.
  • Summary of Incident: The defendant was employed and failed to report his work and earnings while claiming benefits.

May 2016

05/11/16: Claimant Jailed and Ordered to Pay Restitution for Disability Insurance Fraud
  • County: Los Angeles
  • Court Case Number: BA440567
  • Restitution Ordered: $19,498
  • Claimant: Verhanell Gibson
  • Conviction: The claimant was convicted of Section 2101(a) of the California Unemployment Insurance Code, a felony.
  • Sentence: The clamant was sentenced to 16 months in county jail, five years of probation, 400 hours of community services, and was ordered to pay restitution of $19,498.
  • Summary of Incident: The claimant was employed and failed to report his work and earnings to the EDD while collecting Disability Insurance benefits.
05/02/16 and 05/23/16: Employer Sentenced for Tax Evasion and Insurance Fraud
  • County: Santa Clara
  • Court Case Number: C1480805
  • Amount Due to the EDD: $146,879
  • Employer: Teofilo and Sara Oceguera DBA Teo’s Roofing & Waterproofing
  • Sentences: On 05/02/16, Sara Oceguera was sentenced to seven years and four months of probation. The court imposed the investigation cost as part of restitution, but declined to impose any penalties and interests against her. On 05/23/16, Teofilo Oceguera was sentenced to three years of formal probation. Teofilo Oceguera was ordered to pay victim restitution jointly and severally with Sara Oceguera to the Franchise Tax Board and the State Compensation Insurance Fund. On 05/23/16, all charges were reduced to misdemeanors.
  • Summary of Incident: The employer failed to report and underreported employee wages to the EDD and to a workers’ compensation insurance carrier.

April 2016

04/27/16: Claimants Sentenced to Federal Prison for Disability Insurance Fraud
  • County: Los Angeles (United States District Court - Central District, Western Division)
  • Court Case Number: 15-CR-00672
  • Amount Due to the EDD: $900,711
  • Claimants: Robert Lee Lett and Latanya Annette Lett
  • Charges: Section 1349 and section 1028(a) both of Title 18, United States Code, charged on 12/9/15.
  • Conviction: The claimants were convicted on 01/25/16 and sentenced on 04/27/16.
  • Sentence: Robert Lee Lett was sentenced to four years and nine months in federal prison followed by a probation of supervised release for three years. Latanya Annette Lett was sentenced to three years and ten months in federal prison followed by a probation of supervised release for three years. Both claimants were ordered to pay full restitution in the amount of $900,711.
  • Summary of Incident: The claimants, as husband and wife, stole the identities of numerous individuals, forged the signatures of several doctors, and filed over 100 fraudulent applications for Disability Insurance benefits using the stolen identities.
  • Press Release: The United States District Attorney’s Office issued a press release on 04/29/16: Couple Sentenced to Years in Prison in Scheme that Used Stolen Identities to Steal over $900,000 from California Disability System
04/23/16: Claimant Convicted and Sentenced for Disability Insurance Fraud Working Violations
  • County: Stanislaus
  • Court Case Number: 1476622
  • Amount Due to the EDD: $10,442
  • Claimant: Mia Sandoval
  • Conviction: The claimant pled no contest to one misdemeanor count of Section 487 of the Penal Code.
  • Sentence: The claimant was ordered to pay $10,442 in restitution to the EDD and serve three years of summary probation.
  • Summary of Incident: The claimant failed to report her work and earnings while collecting Disability Insurance benefits.
04/22/16: Claimant Convicted and Ordered to Pay Restitution for Disability Insurance Fraud
  • County: San Bernardino
  • Court Case Number: 16CR-004122
  • Amount Due to the EDD: $44,015
  • Claimant: Shannon Urban (Lopez)
  • Conviction: Section 2101(a) of the California Unemployment Insurance Code, and Section 470 of the Penal Code.
  • Sentence: Three years of summary probation with an order to pay restitution in full.
  • Summary of Incident: The suspect forged and altered doctor forms on several of her claims to fraudulently collect Disability Insurance benefits.
04/18/16: Claimant Convicted and Ordered to Pay Restitution for Unemployment Insurance
  • County: San Bernardino
  • Court Case Number: FSB1503264
  • Amount Due to the EDD: $11,403
  • Claimant: Edward Salazar
  • Conviction: Section 2101(a) of the California Unemployment Insurance Code, and Section 470 of the Penal Code.
  • Sentence: The claimant was ordered to pay $11,403 in restitution to the EDD and serve 36 months of summary probation.
  • Summary of Incident: The claimant was employed and failed to report his work and earnings while certifying for Unemployment Insurance benefits.

March 2016

03/22/16: Claimant Jailed for Collecting Disability Insurance Benefits Using Stolen Identities
  • County: US Central District, Western Division, Los Angeles
  • Court Case Number: 2:14-mj-02123
  • Amount Due to the EDD: $115,922
  • Claimant: Michelle Armstrong
  • Conviction: Armstrong was convicted on 03/11/15 of conspiracy to commit mail fraud.
  • Sentence: The claimant was sentenced on 03/22/16 to 15 months in prison and three years supervised release.
  • Summary of Incident: Armstrong and a co-conspirator, who was previously convicted and sentenced, filed multiple Disability Insurance claims using stolen identities and the wage credits of numerous victims without their knowledge.
03/03/16 and 03/24/16: Employer Jailed and Ordered to Pay Restitution for Tax Evasion
  • County: Sacramento
  • Court Case Number: 16F00501
  • Amount Due to the EDD: $115,922
  • Employer: William Huffman and Huffman Enterprises, Inc. DBA Capitol City Contractors
  • Conviction: On 03/3/16, Huffman pleaded guilty to felony counts of section 11760(a) of the Insurance Code and section 2101.5 of the California Unemployment Insurance Code.
  • Sentence: On 03/24/16, Huffman was sentenced to serve one year in county jail, five years of formal probation, and to make restitution payments to two insurance carriers and to the EDD. The EDD will receive $115,922.62, including penalties and interest.
  • Summary of Incident: The allegation came from the California Department of Insurance who requested the EDD Investigation Division to assist working a joint criminal investigation. An EDD audit uncovered $1,092,842 in wages that were not reported to the EDD from the fourth quarter of 2012 through the second quarter 2015. Also, the employer failed to accurately report employees to a workers’ compensation insurance carrier totaling $187,757. 
03/01/16: Claimant Jailed for Collecting Workers’ Compensation While Receiving Disability Insurance Benefits
  • County: Contra Costa
  • Court Case Number: 172648-8
  • Amount Due to the EDD: $14,232
  • Claimant: Janet Martin
  • Conviction: Martin was convicted of section 550 of the Penal Code.
  • Sentence: Martin was sentenced to six months in jail and ordered to pay restitution.
  • Summary of Incident: Martin received worker’s compensation insurance payments while collecting Disability Insurance.

February 2016

02/22/16: Employer Convicted For Tax Evasion and Insurance Fraud
  • County: Santa Clara
  • Court Case Number: C148080T
  • Amount Due to the EDD: $146,879.43
  • Employer: Teofilo and Sara Oceguera DBA Teo’s Roofing and Waterproofing
  • Convictions: On 02/22/16, Teofilo Oceguera plead no contest to 13 felony counts including three counts of Revenue and Taxation Code 19705(a)(1) and two counts each of Sections 2108, 2117.5, and 2118.5 of the California Unemployment Insurance Code (CUIC), 11880(a) Insurance Code, and 19706 Revenue and Taxation code. Sara Oceguera plead no contest to three felony counts including one felony count of Section 2108 CUIC.
  • Summary of Incident: The initial allegation came from the Santa Clara District Attorney’s (SCDA) Office alleging Teo’s Roofing & Waterproofing was committing workers’ compensation insurance premium fraud by reporting roofing employees only after they were injured on the job. SCDA believed that the business was operating and paying employees during the period when they reported zero payroll to their insurance company and to the EDD. Investigation confirmed the employers failed to report all employees and their wages to the EDD. An audit identified $575,440 in wages that were not reported to the EDD between 01/01/09 and 12/31/12 for which restitution of $34,601 has thus far been received.
02/11/16: Claimant Sentenced to Prison for Unemployment Insurance Mail Fraud
  • County: Sacramento (Federal Court)
  • Court Case Number: 2:12-cr-00180-mce
  • Claimant: Kewal Singh
  • Conviction: On 2/12/15 the claimant pleaded guilty to one felony count of Section 1349, Title18 of the United States Code.
  • Restitution Ordered: The claimant was ordered to pay $173,338.87 joint and severally with other claimants to EDD.
  • Sentence: On 2/11/16, the claimant was sentenced to 12 months and one day in the custody of the United States Bureau of Prisons and 36 months of probation to be served upon release of custody plus a $100 court assessment fee. 
02/04/16: Claimant Convicted and Sentenced For Unemployment Insurance Working Violations
  • County: San Bernardino
  • Court Case Number: FSB1503746
  • Restitution Ordered: $11,700.00 (paid in full)
  • Claimant: Leo Gaudette, Jr.
  • Conviction: The claimant was convicted of Section 2101(a) of the California Unemployment Insurance Code reduced to a misdemeanor.
  • Sentence: The claimant was ordered to pay $11,700.00 in restitution to the EDD and to serve three years of summary probation.
  • Summary of Incident: The claimant was employed and failed to report work and earnings to the EDD while collecting Unemployment Insurance benefits.

January 2016

01/25/16: Claimants Convicted for Submitting Forgery Claim Certifications to Claim Disability Insurance Benefits
  • County: Los Angeles
  • Court Case Number: 15-CR-00672
  • Amount Due to the EDD: $900,711
  • Claimants: Latanya Annette Lett and Robert Lee Lett
  • Conviction: On 01/25/16 both claimants pleaded guilty to one count of Title 18, U.S. Code Section 1349 (conspiracy to commit mail fraud).
  • Charges Files: Charges filed in United States District Court -Central District, Western Division in Los Angeles include Title 18, U.S. Code Section 1349 (conspiracy to commit mail fraud, and section 1028 (a) (aggravated identify theft). 
  • Sentence: Sentencing is scheduled for 04/25/16.
  • Summary of Incident: A husband and wife stole the identities of numerous individuals, forged the signatures of several doctors, and filed and collected Disability Insurance benefits using the identity and the wages of the victims. 
01/21/16: Claimant Sentenced for Submitting Forged Claim Certifications and Receiving Benefits While Working and Workers Compensation Insurance Fraud
  • County: Los Angeles
  • Court Case Number: BA422409
  • Amount Due to the EDD: $15,007 court ordered
  • Claimant: Leroy Barnes
  • Conviction: On 01/21/16, Barnes pleaded no contest to section 1871.4(a) (1) Insurance Code (false and fraudulent claims), and section 2101(a) (1) California Unemployment Insurance Code (false statements).
  • Sentence: The claimant was ordered to serve 90 days electronic monitoring, complete 400 hours community service, and pay $24,500 in restitution by 01/17/17. The EDD will receive $15,007 and Fireman’s Fund insurance carrier will receive $9,493. 
  • Summary of Incident: The claimant is a professional dancer who collected Disability Insurance benefits while he worked and received wages. The claimant failed to report his work and earnings to the department.
01/19/16: Employer Convicted and Sentenced for Payroll Tax Evasion and Workers’ Compensation Fraud
  • County: Contra Costa
  • Court Case Number: 1-173436-7
  • Amount Due to the EDD: $149,708 court ordered
  • Employer: Raphael Tran DBA My Nails & Spa Inc.
  • Plea: The employer pleaded guilty to section 2108 misdemeanor of the California Unemployment Insurance Code (willful failure or refusal to make contribution) and section 11760(a) misdemeanor of the California Insurance Code (false or fraudulent statements to the determination of a premium or rate).
  • Conviction and Sentence: The employer was ordered to serve three years of formal probation and 40 days in county jail. The employer was also ordered to pay $195,773 in victim restitution with $149,708 to the EDD and the remainder to the workers’ compensation insurance carriers.
  • Summary of Incident: The employer failed to report and underreported employee wages to the EDD and to the workers’ compensation insurance carriers. The employer intentionally misclassified employees as independent contractors.
01/14/16: Claimant Sentenced For Unemployment Insurance Fraud Based On Identity Theft
  • County: Sacramento
  • Court Case Number: 2:12-CR-375 TLN
  • Amount Due to the EDD: $1,425
  • Claimant: Gregory Bart Martin
  • Conviction: On 10/22/15, Martin was convicted of four counts of mail fraud. 
  • Sentence: On 01/14/16, Martin was sentenced to 18 months of probation and ordered to pay $1,425 in restitution to the EDD.
  • Summary of Incident: The claimant and a co-conspirator filed fictitious employer registrations with the EDD and filed for and collected Unemployment Insurance benefits promising individuals UI benefits for using their identity.
01/13/16: Claimant Convicted and Sentenced for Submitting Forged Disability Insurance Claim Certifications and Receiving Benefits While Working
  • County: Los Angeles
  • Court Case Number: NA103095
  • Amount Due to the EDD: $20,194
  • Claimant: Michelle Evans
  • Conviction: On 01/13/16, Evans pleaded no contest to section 487(a) (grand theft) Penal Code and was convicted of a felony.
  • Sentence: Evans was sentenced to serve five years of formal probation, to perform 800 hours of community service, and ordered to pay full restitution to the EDD in the amount of $20,194.
  • Summary of Incident: The claimant submitted forged medical extensions and worked while she collected Disability Insurance benefits from the EDD.
01/06/16: Claimant Sentenced For Unemployment Insurance Fraud Based On Identity Theft
  • County: Los Angeles
  • Court Case Number: CR15-292-DMG
  • Amount Due to the EDD: $221,612
  • Claimant: Dena Anne Peterman, aka Dena Anne Buttram
  • Conviction: On 10/13/15, the claimant was convicted of conspiracy to commit mail fraud in violation of Title 18 U.S.C § 371.
  • Sentence: On 01/06/16, the claimant was sentenced to 12 months and one day in federal prison and ordered to pay restitution to the EDD in the amount of $221,612. Upon release from imprisonment the claimant shall be placed on supervised release for three years.
  • Summary of Incident: The claimant and her co-conspirator filed fictitious employer registrations with the EDD then filed for and collected Unemployment Insurance benefits using stolen identities of deceased or elderly individuals. The claimant also promised individuals benefits for using their identity.