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The co-owner of a Riverside, California-based multistate janitorial company is facing charges of defrauding five insurers of $2.7 million in a premium fraud scam, the Riverside County District Attorney’s Office said Wednesday.
Patricia Morales, 46, of Riverside, is charged with seven counts of workers compensation premium fraud as well as an aggravated white collar crime enhancement. She co-owned Mac & Mor Cleaning Services, which had business contracts and employees in nine states, according to a statement from the district attorney’s office.
Ms. Morales was responsible for handling the workers compensation insurance policies for the company’s more than 100 employees. She is charged with defrauding the five insurers of $2.7 million during 2012-2017 by falsely underreporting the company’s payroll. She also is accused of forging state payroll records to match what she reported to insurers, according to the statement.
A court date has been set for June 5.
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The owner of a San Jose, California, security company was arrested for allegedly underreporting payroll by more than $12 million in an attempt to secure a lower workers compensation rate under false pretenses and cheating his insurer out of more than $3.2 million, the California Department of Insurance announced Thursday.
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