View this article online: https://www.insurancejournal.com/magazines/mag-features/2017/06/19/454562.htm
Detectives with the California Department of Insurance arrested Gina Marie Gregori, 55, of Lafayette, for allegedly underreporting payroll and duping insurers out of $32 million.
Gregori was charged with 19 felony counts and is being held on $5.2 million bail at the San Francisco County Jail.
Over a seven-year period Gregori, owner of GMG Janitorial, GMG Billings, and Apex Janitorial Solutions, allegedly falsified documents and underreported payroll to her workers’ comp insurance company, according to CDI detectives.
A CDI investigation allegedly showed Gregori was keeping two sets of books, using a payroll processing service to report to Employment Development Department and pay her employees, and keeping a fraudulent set of books that she provided to insurers and insurance auditors, which showed a significantly lower payroll amount.
GMG is a large janitorial company operating throughout the Bay area and Southern California, reportedly employing more than 200 employees from July 2009 through December 2016.
The investigation was led by CDI with assistance from the San Francisco County District Attorney’s Office, which is prosecuting the case.