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Trucker couple arrested in LA- Long Beach trucking insurance fraud case
JOINT owners of a trucking company, Metro Worldwide Inc, operating out of the ports of Los Angeles and Long Beach have been arrested during a government investigation for insurance fraud by the Los Angeles County District Attorney .
Alvin Shin Chen, 54, and Fiona Xilin Chen 46, were each charged with 18 counts of workers' compensation fraud and five counts of failing to pay taxes, reported American Journal of Transportation.
They were arraigned in Los Angeles County Superior Court, two weeks after state insurance department detectives arrested them at their La Canada Flintridge home.
This is also a company with safety violations that raised public safety concerns. According to Federal Motor Carrier Safety Administration records, Metro Worldwide has also had two crashes in the past 24 months and paid a US$5,130 fine in 2011 for its drivers' violations of hours of service regulations.
The co-owners of the company allegedly reduced workers' compensation premiums by misleading their insurer about how many employees they had and the type of work they performed.
According to reports, they paid cash to company drivers to avoid reporting them to the insurer and to reduce payroll taxes.
Between 2009 and 2013 the Chens are alleged to have under-reported payroll by $4.6 million, which allegedly shorted their insurer out of $2.1 million in workers' compensation premiums.
If convicted as charged, they could face up to 36 years in state prison. The Chens were each held on $950,000 in bail.
Alvin Shin Chen, 54, and Fiona Xilin Chen 46, were each charged with 18 counts of workers' compensation fraud and five counts of failing to pay taxes, reported American Journal of Transportation.
They were arraigned in Los Angeles County Superior Court, two weeks after state insurance department detectives arrested them at their La Canada Flintridge home.
This is also a company with safety violations that raised public safety concerns. According to Federal Motor Carrier Safety Administration records, Metro Worldwide has also had two crashes in the past 24 months and paid a US$5,130 fine in 2011 for its drivers' violations of hours of service regulations.
The co-owners of the company allegedly reduced workers' compensation premiums by misleading their insurer about how many employees they had and the type of work they performed.
According to reports, they paid cash to company drivers to avoid reporting them to the insurer and to reduce payroll taxes.
Between 2009 and 2013 the Chens are alleged to have under-reported payroll by $4.6 million, which allegedly shorted their insurer out of $2.1 million in workers' compensation premiums.
If convicted as charged, they could face up to 36 years in state prison. The Chens were each held on $950,000 in bail.
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