Luis Roberto Diaz, of Corona, Calif., surrendered to the San Bernardino Superior Court on November 22, 2004, after being charged with two counts of grand theft, three counts of insurance premium fraud, one count of insurance fraud and two counts of tax evasion under the California Unemployment Insurance Code.
The case, being prosecuted by the San Bernardino County District Attorney’s Workers’ Compensation Fraud Unit, was jointly investigated by the California Department of Insurance, Fraud Division (CDI) and the state Employment Development Department’s Investigation Unit (EDD).
CDI investigators allege that Diaz, doing business as PDL Inc., PPDL Inc., and Luis Diaz Painting, underreported the total amount of payroll to avoid paying the proper amount of workers’ compensation premium to the State Compensation Insurance Fund (SCIF). The investigation revealed a lost premium to SCIF of approximately $233,765.
In addition, EDD investigators allege that Diaz failed to file a return or supply required information, collect, account for and pay any tax or amount required to be withheld for employees. The estimated total of these alleged crimes is more than $300,000, including penalties.
Topics Fraud Workers' Compensation
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