Janitorial Company Owners Arraigned for Insurance Fraud After Allegedly Underreporting $2.4 Million in Payroll

SAN BERNARDINO, Calif. — Jose Arredondo, of Fontana, 50, and his wife, Olga Chaves, 45, were arraigned today on multiple felony counts of insurance fraud after a California Department of Insurance investigation found the couple allegedly underreported payroll for their janitorial company by over $2.4 million to illegally save on workers’ compensation insurance premiums and avoid payroll taxes.

The Department began its investigation after an employee of the janitorial company owned by Arredondo and Chaves sustained a work-related injury and the insurance company providing workers’ compensation insurance suspected fraud.

Read the entire press release.  California Department of Insurance, May 22, 2024