Zachary Navo, 38, of Visalia, Calif., was arraigned yesterday on 5 felony counts of insurance fraud just after a California Department of Insurance plan investigation uncovered he allegedly underreported wages by around $2.5 million in an endeavor to fraudulently reduce workers’ compensation high quality payments, ensuing in a loss of over $135,000 to his insurance coverage businesses.
In December 2017, Condition Payment Insurance plan Fund issued Navo a workers’ comp insurance policies coverage for his non-public safety organization, Factor Stability Remedies Inc. In June 2018, Navo finished a payroll report indicating he experienced $80,500 in payroll for the first six months of the policy interval. Navo unsuccessful to post subsequent payroll info and unsuccessful to comply with an stop of coverage audit.
For the duration of the investigation, a critique of Employment Improvement Division documents for the 12-month plan interval reportedly discovered $2,098,394 in payroll was documented to EDD for Ingredient Safety Methods, which revealed an underreporting of about $2 million in payroll to SCIF. The underreporting resulted in a claimed $134,761 reduction in high quality owed to SCIF.
Investigators also found that Navo is a accredited coverage agent and owns a secondary entity, Navo Financial Inc., an insurance plan and money alternatives organization, in which Navo noted $504,302 in payroll from 2016 to 2019. Nevertheless, EDD documents for the period of time of 2016 to 2019, located Navo documented $1,047,482 in payroll to EDD for Navo Monetary, demonstrating an underreporting of $543,180 in payroll and resulting in a $1,164 loss to a distinctive insurance policy enterprise.
The scenario is getting prosecuted by the Tulare County District Attorney’s Office environment.
Intrigued in Fraud?
Get computerized alerts for this matter.