Carrier Owners May Face 36 Years Over Alleged Fraud

The owners of a California carrier have been arrested and charged with multiple counts of fraud after it was discovered that they had allegedly been paying some employees in cash to avoid reporting them on insurance premium and tax forms.

Alvin and Fiona Chen were arrested in their home by authorities and charged with multiple felonies including insurance premium fraud.

According to authorities, between 2009 and 2013, the Chens’ companies, Metro Worldwide Inc. and Pacific Coast Distribution, underreported their payroll by $4.6 million and underpaid their insurance provider by more than $2.1 million.

If the Chens are found guilty of all 18 counts of workers’ compensation fraud and 5 counts of failing to pay taxes, they could face up to 36 years in prison. They are being held with bail set at $950,000.

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