SAN JOSE, Calif. (AP) — A retired San Jose Police officer who owns a safety enterprise pleaded no contest to insurance coverage fraud, tax evasion, cash laundering, and employee exploitation and is anticipated to be sentenced to a few years in jail, prosecutors stated Friday.
Robert Foster, who retired from the San Jose Police Division after he was charged within the case in July 2020, owns Atlas Non-public Safety with Mikaila Foster, his spouse, who additionally pleaded no contest and is anticipated to be sentenced to at least one yr in jail and 5 years of probation, stated Santa Clara County District Legal professional Jeff Rosen.
Foster began the corporate, now known as Genesis Non-public Safety, with out the information of the police division, Rosen stated.
The couple illegally decreased their insurance coverage premiums and taxes by reporting false payroll, paying staff off-the-books, and underreporting worker accidents. The Fosters additionally didn’t pay staff additional time and dissuaded them from reporting on-the-job accidents and wage-theft violations, Rosen stated.
In a single case, an “off-the-books” safety guard suffered extreme accidents throughout a crash whereas driving an Atlas safety automobile. Robert Foster responded to the guard’s $1 million medical invoice by telling the insurance coverage firm that the guard was not an Atlas worker. Investigators discovered information exhibiting that the guard was driving an Atlas automobile and carrying an Atlas uniform on the time of the collision.
“Exploitation takes an enormous toll on staff,” District Legal professional Jeff Rosen stated. “Our Workplace doesn’t tolerate the victimization of staff and can prosecute these accountable — regardless of who they’re.”
The investigation additionally uncovered the couple used a subcontractor that had no information of the staff’ hours, wages, or schedules. The opposite firm merely moved cash from the Fosters’ agency to the staff in order that the Fosters may keep away from paying their fair proportion of taxes, staff’ compensation insurance coverage, and additional time wages, Rosen stated.
Robert Foster may also be ordered to repay $1.13 million to Everest Nationwide Insurance coverage and the Employment Improvement Division, Rosen stated. His sentencing is scheduled for Feb. 25.
Mikalia Foster’s sentencing is scheduled for April 29.
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