An Orange County business owner and his office manager have been charged in an insurance fraud scheme that apparently put employees at risk and denied them wages, according to the California Department of Insurance. Bobby Levell Gilbert, Jr., owner of B&J Tree Service, faces 96 felony counts of wage theft, denial of workers’ compensation benefits to employees, workers’ compensation fraud, failure to pay taxes and perjury, officials said. His office manager, Bertha Rubi Sanchez, 30, of Anaheim, was also charged with multiple felonies for her alleged role in the scheme.
Orange County Business Owner Charged with Insurance Fraud Scheme
An Orange County business owner and his office manager have been charged with multiple felonies for their alleged involvement in an insurance fraud scheme that put employees at risk and denied them wages. Bobby Levell Gilbert Jr., the owner of B&J Tree Service, faces 96 felony counts of wage theft, denial of workers’ compensation benefits to employees, workers’ compensation fraud, failure to pay taxes and perjury. Bertha Rubi Sanchez, the office manager of B&J Tree Service, was also charged with multiple felonies for her alleged role in the scheme.
The Allegations
According to the California Department of Insurance, Gilbert allegedly took advantage of his workers by denying them what they earned “for his own enrichment.” A total of 32 workers were either denied wages or workers’ compensation benefits they were entitled to when injured on the job or both. Between October 2013 and August 2021, Gilbert and Sanchez allegedly conspired to underreport payroll to their insurance carriers by about $1.3 million. Their failure to report employee payroll therefore resulted in a reduction of workers’ comp insurance premiums leading to about $248,757 owed.
The Charges
Gilbert faces 96 felony counts of wage theft, denial of workers’ compensation benefits to employees, workers’ compensation fraud, failure to pay taxes and perjury. Sanchez was also charged with multiple felonies for her alleged role in the scheme.
The Consequences
The Orange County District Attorney’s Office is prosecuting the case. The two defendants are due back in court in December. If convicted on all charges, Gilbert could face up to 80 years in prison.
“Cases like this one are particularly egregious,” said Insurance Commissioner Ricardo Lara in a news release. “Employees were not only put at great risk but they were denied their hard-earned wages.”