California Defense Contractor Commits Fraud?

We are learning that a state defense contracting firm is facing major charges, some of which have to do with workers’ compensation fraud.

The Baro Infoware and Federal Solutions Group are two companies owned by three family members. All three have been charged with laundering $1.5 million along with the workers’ comp fraud. The charges indicate that the defendants asked workers not to report their injuries and would even bribe them to not file claims. The charges also say that the family members provided false information to insurance companies.

The state of California takes workers’ compensation fraud seriously, which is why you need to know where to turn if you have been accused. At Sacks Law Group, APC, you can count on our knowledgeable and experienced team to be by your side, charting the best path forward. When you need an employer’s workers’ compensation defense attorney in Los Angeles, we are here for you.

What Can Happen

We do not know the exact reason that the owners of Baro Infoware and Federal Solutions Group did not want their employees to not report injuries.

• Maybe they did not want their premiums to go up.
• Perhaps they had no workers’ compensation insurance at all.

Either way, it may result in major penalties for the owners. Companies, whether they are larger or small, face hefty penalties for not complying with state workers’ compensation requirements. This can include fines as well as jail time.

You may think, “But isn’t there a fund to cover uninsured workers?”

Yes, there is an Uninsured Workers’ Compensation Fund that covers those who get hurt and are not insured by their employers, but that is not going to absolve the employer of having to pay. The state will likely seek to recoup that money from the employer through liens or other methods.

Employers could face up to a year in jail and thousands of dollars in fines for not insuring their employees. It could also halt their ability to conduct business if they are issued a stop order.

Moving Forward From Here

We understand that every case is different and that people have many reasons for not insuring their employees. The state of California is not going to look at those reasons. They are going to look at the law and slam you with penalties that could ruin your business and personal finances.

When you are facing potential charges of insurance fraud, we know the situation can seem scary. For most people, especially small business owners, their entire lives revolve around the success of the business. Not only can fines and punishments be detrimental in the short-term, but they can completely put you out of business.

When you need a Los Angeles workers’ compensation defense attorney, you can count on Sacks Law Group, APC. Our team will be by your side formulating a strategy to get you through this. You can contact us for a consultation by clicking here or calling 310-216-7778.