For one California brother and sister, their efforts to outwit the state proved fruitless.
Michael George Mello Jr., 37, and his sister Mary Catherine Rodriguez, 38, owners of Sacramento-based Green Valley Landscaping Services, pleaded no contest recently to workers compensation insurance fraud and tax evasion.
Between July 2010 and July 2013, authorities say the siblings conspired to commit workers comp insurance premium fraud by significantly under reporting the number of employees and payroll in their business. By operating in California’s illegal underground economy, this fraud left employees at risk and homeowners who hired them financially vulnerable and liable for possible injuries.
In total, the defendants’ cheated workers comp insurance carriers out of $144,672 in premiums and the Employment Development Department (EDD) out of $110,462 in payroll taxes.
Mello was sentenced to 30 days county jail, five years formal probation and ordered to pay $144,672 in restitution to insurance companies and $110,462 to EDD.
Rodriguez was sentenced to three years’ probation, 50 hours of community service and order to pay EDD $110,462 in restitution jointly with her brother.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
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