3 JAILED IN FRAUD INVOLVING MILLIONS.Byline: DANA BARTHOLOMEW Staff Writer CHATSWORTH -- Three top officials of the nation's largest flooring installation company were arrested Wednesday on suspicion of committing almost $11 million in insurance fraud, prosecutors said. Gadi Leshem, 59, founder and president of Cover-All Inc. of Chatsworth, was arrested at his Northridge home by state insurance fraud investigators. Also arrested were company Vice President Zeev Golan, 54, and his wife Irit Golan, 52, corporate secretary and payroll supervisor, both of Northridge. Each was charged with conspiracy and four counts of insurance fraud in a felony felony (fĕl`ənē), any grave crime, in contrast to a misdemeanor, that is so declared in statute or was so considered in common law. indictment alleging $10.9 million in workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. premium fraud. If convicted, each suspect faces a maximum of 17 years in prison. ``The loss of $11 million in insurance money is a serious crime,'' said Jane Robison, a spokeswoman for the Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County District Attorney's Office. The three were each being held on $6.5 million bail. ``We'll be entering pleas of not guilty and will address the specifics of the evidence in court,'' said Janet Levine, an attorney representing Leshem. ``Cover-All has provided good services and good, honest employees and benefits for people in many states and hopes to continue to do so.'' Attorneys for the Golans had not yet been retained, Levine said. The complaint alleges that each suspect conspired to underreport un·der·re·port tr.v. un·der·re·port·ed, un·der·re·port·ing, un·der·re·ports To report (income or crime statistics, for example) as being less than actually is the case. the company's payroll by $31.8 million between September 2001 and April 2006, thereby reducing the firm's workers' comp premiums by more than $10.9 million. The case was investigated by the state Compensation Insurance Fund's Special Investigation Unit. Cover-All Inc. is the nation's largest carpet and flooring installation contractor, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its Web site, with 55 offices in 17 states and exclusive contracts with Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box . dana.bartholomew(at)dailynews.com (818) 713-3730 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion