The owners of a cleaning company serving luxury hotels in Southern California and Nevada have pleaded guilty in connection with a nearly $7 million insurance and tax scam.
The San Diego Union-Tribune reported Hyok “Steven” Kwon and his wife, Woo “Stephanie” Kwon, owned Irvine-based Good Neighbor Services.
They were accused of concealing the existence of 800 employees over nearly a decade to avoid paying millions in payroll taxes and workers’ compensation insurance.
Steven Kwon pleaded guilty to felony charges related to fraud and employment tax evasion last month. He was sentenced to eight years in prison.
His wife admitted to similar charges in December and was given more than six years in prison, but she’s now serving part of her term on probation.
Several others were charged in the case.
Related:
- Owner of Hotel Cleaning Firm in California Pleads Guilty to Workers’ Comp Fraud
- Owners of Hotel Cleaning Firm in California Charged with $7M Workers’ Comp Fraud
Topics California Fraud Workers' Compensation
Was this article valuable?
Here are more articles you may enjoy.
Why El Niño’s Promise of Quieter Hurricane Season May Not Be Good News for Insurers 
Troubled Alabama City Loses its Liability Insurance Coverage 
NYC Mayor Mamdani’s Rent Freeze Heaps Pressure on a Teetering CMBS Deal 
Law Restricts Her From Reducing ‘Excessive’ $91M Injured Worker Award, Judge Finds 
