Tulare County business owner accused of under-reporting $2.5M payroll to avoid workers comp
A Visalia business owner is being charged with five felony counts of insurance fraud for allegedly under-reporting worker wages of more than $2.5 million in an attempt to fraudulently reduce his workers’ compensation premium payments.
Zachary Navo, 38, owner of insurance and financial solutions businesses Element Security Solutions and Navo Financial., was investigated by the California Department of Insurance.
A review of his records found that Navo under-reported his payroll for both companies resulting in smaller premiums to the State Compensation Insurance Fund and another insurance company.
Investigators determined Navo shortchanged the State Compensation Insurance Fund by $134,761 in premiums and $1,164 to a different insurance provider.
Under state law, employers are required to maintain workers comp insurance to protect their employees in the event of an accidental on-the-job injury.
To ensure proper coverage, employers must accurately report the number of employees, job classifications, and the amount of their payroll.
One of the common ways unscrupulous employers try to dodge paying insurance premiums is to underreport a business’s payroll by providing false payroll reports to their insurance company.
This case is being prosecuted by the Tulare County District Attorney’s Office.
