Pacific Grove man sentenced for workers’ comp fraud, owes hefty victim resolution compensation
UPDATE: 6/30/15On Monday, Monterey County District Attorney Dean D. Flippo announced that Juan Rosas was sentenced for three felony charges.
The three charges include failing to accurately report employee wages to obtain a lower workers’ compensation insurance premium, fraudulent use of a contractor’s license and willfully failing to file payroll tax returns with intent to evade tax.
The defense attorney requested a specially set sentencing hearing to argue that the felonies should be reduced to misdemeanors.
The court ruled the convictions would remain felonies and placed the defendant on probation for six years and four months, the maximum duration by law.
The court ordered the defendant to serve forty days in county jail, pay over $30,000 in fines, be subject to a search by any probation or peace officer and be subject to other terms and conditions of probation to ensure the defendant is properly conducting business.
The victim resolution was ordered by the court to be $67,406.82 to be paid to the SCIF with interest to increase at 10% per annum and victim restitution in the amount of $155,250.03 to be paid to the EDD for the failure to file and pay payroll tax returns.
Employers are required to register their businesses, report and pay taxes to EDD for all employees. Contractors have license requirements.
Additionally, business owners and the public need to be aware that California law requires all employers to secure workers’ compensation insurance for their employees so that there is adequate medical coverage and other benefits for employees for any work related injuries that may occur.
PREVIOUS STORY: 4/14/15 A Pacific Grove man is facing a prison sentence after he pleaded guilty to charges of workers’ compensations insurance fraud, running a construction business without a license and tax evasion.
On Tuesday April 14, the Monterey County District Attorney’s Office said Juan Rosas, 33, faces a maximum of six years and four months in prison and an estimated $211,000 in restitution. But prosecutors said Rosas likely will be sentenced to felony probation.
The District Attorney’s office said it received a complaint in 2012, stating Rosas’ business, Juan the Builder and Associated, Inc., was operating without a valid license and without workers’ compensation insurance for his employees.
During a joint investigation, fraud investigators said they worked with the Contractor State License Board and found Rosas had been been fraudulently reporting a minimum payroll to the State Compensation Insurance Fund from March 2007 to September 2012.
Prosecutors said Rosas repeatedly avoided an audit and his policy was eventually cancelled.
