California Business Faces Criminal Penalties For Workers’ Compensation Fraud
If you need a Los Angeles workers’ compensation defense attorney, we are ready to help. The team at Sacks & Zolonz, LLP understands these laws and is ready to defend you today.
Logo 310-216-7778
400 Corporate Pointe, Suite 800 Culver City, , CA 90230
638 North Eckhoff Street Orange , CA 92868

California Business Faces Criminal Penalties For Workers’ Compensation Fraud

June 15, 2019
Sacks & Zolonz, LLP
Workers' Compensation Defense

Owning and operating a business is hard, especially in California. We know that you have so much to keep up with and that there are times when things slip through the cracks. However, not having insurance for your workers is a crime. If you need a Los Angeles workers’ compensation fraud attorney, we are ready to help. The team at Sacks & Zolonz, LLP understands these laws and is ready to defend you today.

A Real Reminder That California Will Come After Those Who Violate The Law

You may hear about these stories from time to time, but we wanted to put this one in front of you as a reminder that California is serious about insurance. Recently, a California district attorney announces that Angel Musones, a 51-year-old Salinas resident, and Navid Homami, a 45-year-old Monterey resident, pleaded no contest to charges of operating a business without workers’ compensation insurance.

The judge in this case sentenced both men to 3 years on probation and ordered each of them to pay a $10,000 criminal penalty.

What Happened In This Case?

The district attorney Workers’ Compensation Fraud Unit began investigating Mile High Security in December 2018. It was determined that the business, which began operation in September 2018, provided private security patrol services (without a valid license). They had as many as eight employees but did not have any workers’ compensation for them.

Here is our reminder to you – not having workers’ compensation in California is a misdemeanor violation of the California labor code. Just like the two men in this case, you can find yourself arrested and slapped with serious criminal penalties, including up to one year in jail.

However, that is not the only reason it is a bad idea to operate a business without insurance. If an employee gets hurt and you do not have workers’ compensation coverage for them, you are opened up to a potential personal injury lawsuit that will cost you much more than premiums ever would have. You could be held liable for a variety of an injured worker’s expenses, including:

  • All of their medical expenses related to the injury
  • Their lost income and future lost wages
  • Their pain and suffering damages

Let Us Get To Work For You Now

Running a business can be overwhelming. The regulations keep changing, and your premiums keep going up. However, you need to remember that there are serious consequences for violating California labor laws. Not having workers’ compensation insurance can lead to criminal charges. At Sacks & Zolonz, LLP, we are ready to help you today. Our knowledgeable and experienced team understands these laws better than anyone else. We have successfully defended clients in situations just like yours. Our goal is to get the charges against you reduced or dismissed altogether so you can get back to operating your business. When you need a Los Angeles workers compensation defense attorney, you can contact us for a consultation by calling at 310-216-7778.

Related Posts
Uninsured Employers

Providing expert defense against fraudulent and frivolous workers’ compensation claims.

Insurance Carriers & Self Insured Employers

Providing comprehensive workers’ compensation defense to insured and self-insured Employers.