Friday, August 09, 2013

Hardas, president of Awesome Products convicted for underreporting payroll by over $8 million





Posted By CotoBlogzz

Rancho Santa Margarita,  - Loksarang Dinkar Hardas,  president of Awesome Products, a cleaning company was convicted and sentenced yesterday for underreporting his payroll by over $8 million resulting in a premium loss of over $898,000 according to the Orange County District Attorney’s (OCDA) office.

Loksarang Dinkar Hardas, 53, Buena Park, pleaded guilty to six felony counts of misrepresenting facts to State Compensation Insurance Fund (SCIF), three felony counts of misrepresenting facts to Worker's Compensation Insurance company, and a sentencing enhancement for committing an aggravated white collar crime. 

Hardas was sentenced to five years in state prison stayed pending successful completion of 10 years of formal probation, $250,000 fine, and restitution payment of $898,000. 
 
Awesome Products has been operating since 1998 as a manufacturing and distribution company for household and commercial cleaning products across the nation.  In 2001, Hardas applied and received a SCIF policy for Awesome Products but the he did not inform SCIF that he leased a majority of his labor from one of his three leasing companies he owned.

On July 10, 2008, Hardas insured his labor leasing companies with The Hartford insurance company but failed to disclose his policy with SCIF.

From July 10, 2008, to Dec. 2, 2010, Hardas underreported over $8 million of his payroll to both SCIF and The Hartford which resulted in a premium loss of $898,000.

SCIF began investigating the fraud after an employee working for one of the labor leasing companies, owned by the defendant, filed an insurance claim after suffering an injury at work. SCIF learned that the employee worked out of the same facility as Awesome Products but was employed through one of the labor leasing companies owned by the defendant.

SCIF reported this to the Orange County District Attorney Bureau of Investigation who investigated this case.

Deputy District Attorney Debbie Jackson of the Insurance Fraud Unit prosecuted this case.

No comments: