Father and son charged in alleged workers comp scheme

The owners of a pair of commercial cleaning companies have each been charged with five felony counts of insurance fraud after a California Department of Insurance investigation found they allegedly underreported $12 million in employee wages and payroll to save on workers compensation insurance premiums.

Edgardo Cabrales Sr. and his son, Edgar Cabrales Jr., owners of San Jose-based Pine Building Maintenance and Network Facility Management, allegedly only secured workers comp insurance coverage for a “fraction” of their employees at both companies, resulting in $4.2 million in lost premiums, the department said in a statement issued Thursday.

The Santa Clara County District Attorney’s Office is prosecuting the case.