The owners of a California commercial cleaning company were scheduled to be sentenced this week in connection with a $4 million workers compensation fraud scheme, prosecutors announced Monday.
Edgardo Cabrales Sr. and Edgar Cabrales Jr. will be sentenced to 10 years’ probation after completing 18 months in a county jail alternative program and after paying more than $1 million in restitution, according to the Santa Clara County District Attorney’s Office.
The father and son, who pleaded guilty in the case, operate San Jose-based Pine Building Maintenance and Network Facility Management.
The California Department of Insurance began investigating the two in 2019 after the State Compensation Insurance Fund suspected fraud. Investigators determined the Cabraleses only insured their PBM employees but never secured a workers compensation policy for the NFM employees.
Failing to report wages to the state fund resulted in $4.2 million in lost premiums, the prosecutors said.
County prosecutors also said Monday that a child therapist will be sentenced in August to three years in prison after pleading guilty earlier this year to insurance fraud.
Mark Anthony Ramos, owner of Stars Bay Area Therapy Group and Stars Bay Area Inc., defrauded workers comp insurers by underreporting payroll between 2015 and 2022.
Investigators were tipped off when a Stars employee inadvertently sent a correct payroll number of about $3 million to an insurer; the figure reported by Mr. Ramos was $132,000.
The fraud resulted in insurer losses exceeding $288,000.Â
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