A brother and sister have been sentenced after pleading no contest to charges involving workers’ compensation fraud and tax evasion.
The Sacramento County District Attorney’s Office announced that 37 year-old Michael George Mello Jr. pled no contest to felony workers’ compensation insurance fraud and felony tax evasion. His sister, 38-year-old Mary Catherine Rodriguez, pled no contest to misdemeanor tax evasion.
Between July 2010 and July 2013, the defendants made false statements in their worker’s compensation insurance applications and policies by significantly underreporting the number of employees and payroll in their business, Green Valley Landscaping Services. They also failed to take required deductions from their employees’ pay and did not make required contributions to the unemployment insurance fund. In so doing, they cheated their workers’ compensation insurance carriers by $144,672 in premiums and the Employment Development Department (EDD) by $110,462.
Mello was sentenced to 30 days county jail, 5 years formal probation, and ordered to pay $144,672 in restitution to the insurance companies and $110,462 to EDD. Rodriguez was sentenced to 3 years probation, ordered to serve 50 hours of community service, and ordered to pay EDD $110,462 in restitution jointly with her brother.
This case was investigated by the California Department of Insurance’s Fraud Division, the Employment Development Department, and the Department of Industrial Relations.