Edgardo Cabrales Sr., 61, and his son, Edgar Cabrales Jr., 36, both of San Jose, California, were charged with five felony counts each of insurance fraud after a California Department of Insurance investigation found they allegedly underreported $12 million in employee wages and payroll to save on workers’ compensation insurance premiums.
The Cabrales own two commercial cleaning companies in San Jose.
An investigation by the CDI began after the State Compensation Insurance Fraud discovered that since 2016 the Cabrales had only secured insurance coverage for a fraction of their PBM employees and they had never secured a workers’ comp insurance policy to insure their NFM employees, even though the majority of their business was operated through NFM.
The father and son accomplices allegedly failed to report approximately $12 million in wages to SCIF to save money on insurance, resulting in $4.2 million in lost premiums.
Topics Fraud Workers' Compensation
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