Fresno commercial floor care business owners indicted on workers’ comp fraud

Fresno commercial floor care business owners indicted on workers’ comp fraud

Three business owners, Osvaldo Molina, 40, Fortino Galeno, 46, and Alicio Galeno, 41, have been indicted and arrested for workers’ compensation premium fraud, WorkersCompensation.com is reporting.

Molina and Galeno, the owners of a Fresno-based commercial floor care company, were also indicted and convicted for charges of tax evasion and grand theft according to the state Insurance Commissioner Dave Jones.

The business was incorporated in California in July 2002 and served local supermarkets as a floor cleaning service.

The investigation began after authorities suspected an under-reported payroll for the periods of April 2007 and October 2011. Officials learned the business owners failed to report more than $5,000,000 in employee payroll to their insurance carrier.

That left a hole in their premiums, and saved the business owners nearly $782,000 in workers’ compensation premiums. The state lost $187,000 in withholdings according to officials.

Detectives also discovered that Alicio Galeno hired employees below the minimum wage standard and locked employees inside their work areas.

Molina and Fortino Galeno could receive up to one year in county jail and up to $50,000 in fines. Alicio Galeno could also see up to one year in jail for each felony if convicted.

WORKERS’ COMPENSATION FRAUD

If you’re a business owner, it goes without saying that you should report all of your financial information legally and honestly. If not, you can be in hot water with the authorities. It’s not worth it.

If high workers’ compensation fees are a concern for your business, we may be able to save you money. Give us a call at 877-683-9990 (Gabe) or 619-708-4311 (Jamie).