Visalia business owner accused workers of comp, insurance fraud
Visalia business owner charged with five counts of insurance fraud for allegedly underreporting workers’ wages by more than $ 2.5 million in an attempt to fraudulently reduce his premium payments workers compensation compensation.
Zachary Navo, 38, owner of insurance and financial solutions companies Element Security Solutions and Navo Financial., Has been investigated by the California Department of Insurance.
A review of his records revealed that Navo had underreported his payroll for both companies, resulting in lower premiums to the State Compensation Insurance Fund and another insurance company.
Investigators determined that Navo reduced the state’s Compensation Insurance Fund by $ 134,761 in premiums and $ 1,164 to another insurance provider.
Under state law, employers are required to maintain supplemental insurance for workers to protect their employees in the event of accidental injury on the job.
To ensure adequate coverage, employers must accurately report the number of employees, job classifications and the amount of their payroll.
One of the common ways for unscrupulous employers to avoid paying insurance premiums is to underreport a company’s payroll by providing false payroll reports to their insurance company.
This case is being pursued by the Tulare County Prosecutor’s Office.