The owners of a California carrier have been arrested and charged with multiple counts of fraud after it was discovered that they had allegedly been paying some employees in cash to avoid reporting them on insurance premium and tax forms.
Alvin and Fiona Chen were arrested in their home by authorities and charged with multiple felonies including insurance premium fraud.
According to authorities, between 2009 and 2013, the Chens’ companies, Metro Worldwide Inc. and Pacific Coast Distribution, underreported their payroll by $4.6 million and underpaid their insurance provider by more than $2.1 million.
If the Chens are found guilty of all 18 counts of workers’ compensation fraud and 5 counts of failing to pay taxes, they could face up to 36 years in prison. They are being held with bail set at $950,000.
Source: ajot, insurancejournal, lbpost, propertycasualty360
Good
I wish Illinois would do the same.
Foriegners all want to come and make money but they want to bring thier curruption with them.
Cmon man ,like there’s no coruption without them.
Wage theft (employers stealing pay or intentionally not paying employees) DWARFS retail theft (employees or strangers stealing goods and services from businesses.)
We have plenty of corruption, yup.
Where does it say they are immigrants? I didn’t read that in this article. Is there another news story somewhere that does say that?
Very common practice…I have seen it many times…
.I have seen it many times…but never have I seen them slammed like this….glad to see it
This is news?!?!? Trucking companies have been finding creative ways to avoid paying drivers for 40 years.
Your right about that, and they’ll continue to do it also. With little or no repercussions.
I wonder when the Feds will get wise to Martin Transport. They overpay their drivers per Diem which is a write off to the company and then charge the drives two and a half cents per mile for the per diem. The 2.5 cents in not reported and they don’t keep a record of it. This is about six million dollars a year of un reported profit out of the drivers pockets!
Then you need to file a complaint with the federal hourly wage control board. This is what they do and mostly all they handle.
These people are up to the same shenanigans now.
LA port rumors are that she is trying to get back in business even shopping around for workers comp again.