The owners of Los Angeles-based builders Ultimate Inc. have been charged with $6 million in insurance fraud.
Enrique Vera, owner of the company and his sister, Gloria Vera, office manager, allegedly falsified payroll records they submitted to the State Compensation Insurance Fund from Jan. 1, 2012 to March 31, 2017.
Authorities allege the two did so to avoid paying the right amount of workers’ compensation, to discourage injured workers from making compensation claims and pursuing benefits and to pay less than the prevailing wage on a student housing project at the University of California, Los Angeles. Gloria Vera is also facing a charge of trying to conceal employees’ workplace injuries.
According to Construction Dive, the siblings have been charged with nine counts of felony workers’ compensation fraud, three counts of felony insurance fraud and six counts of felony grand theft of labor. Enrique Vera faces a maximum of 15 years in prison if convicted, while Gloria Vera could receive up to 19 years.