Bay Area Business Owners, Employee Nailed For Workers’ Comp Fraud

May 9, 2012

Sied “Mike Zarrin” Zarrinsaray, 52, his wife Ronak Barazandeh, 43, the owners of United RMR Enterprises, Inc. of San Jose, were arrested for workers’ compensation insurance fraud, according to the California Department of Insurance.

Also arrested was their employee, 40-year-old Chad Oberquell. If convicted all three could receive a sentence of up to five years in state prison and $50,000 in fines and restitution.

According CDI’s fraud division detectives, on Aug. 26, 2010, Oberquell reported to his employer that he injured his knee while working. After the injury was reported, fellow employees came forward and reported that Oberquell did not injure his knee while working for ITR Industries, but instead was injured while working a weekend job with a competitor, United RMR Enterprises.

During the course of CDI’s investigation it was discovered that United RMR Enterprises had not reported Oberquell’s injury to their workers’ compensation insurance carrier, State Compensation Insurance Fund. The investigation also revealed that United RMR Enterprises was paying Oberquell, and others, cash wages and not reporting these employees on their payroll to SCIF, nor to the California Employment Development Department for the withholding of payroll taxes.

CDI conducted a forensic audit that determined that over a two-year policy period, United RMR Enterprises failed to remit roughly $15,700 in workers’ compensation premiums to their former carrier SCIF.

Additionally, due to the fraudulent workers’ compensation claim filed by Oberquell, the loss to ITR Industries’ workers’ compensation carrier is estimated to be approximately $16,000, according to CDI.

This case is being prosecuted by the Santa Clara County District Attorney’s Office.

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