In national news:

Two sister CEOs of two sewing companies that were subcontracted by True Religion jeans were arrested this week along with their CPA in California. Eighteen felony counts of workers’ compensation insurance fraud totaling more than $11 million in losses have been filed against the trio. The sisters and CPA allegedly conspired to underreport $78.5 million in payroll to multiple insurers including the State Compensation Insurance Fund and two insurance companies owned by Berkshire Hathaway. The alleged fraud was committed by fabricating payroll records provided to insurance carrier auditors with the help of the CPA. State Fund investigators notified California Department of Insurance detectives when they discovered payroll reports submitted to them by the companies showed significantly less total payroll than similar reports submitted to the California Employment Development Department. If convicted, each defendant could serve between 15 and 28 years for their role in the fraud.

Read further details via Workers’ Compensation Institute 360 here.

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