Contractors Charged in Insurance Fraud Case
Three brothers who own a South-Central construction company have been arrested and charged with defrauding state authorities of more than $350,000 in a scam to cut mandated insurance payments, authorities said.
The Los Angeles County district attorney’s office has charged the Quarles brothers--Rafer, 37, Kevin, 34, and Jonathan, 31--with one count of workers’ compensation fraud, three counts of state unemployment insurance fraud and two counts of grand theft, said Barry Gale, a deputy district attorney.
The three are partners in a construction firm, UNIMAX, that allegedly underreported the size of its payroll to state authorities, thus saving on contributions for workers’ compensation, unemployment and disability insurance. The alleged theft, which extended from 1995 to 1998--and spanned several government construction projects--exceeded $350,000, Gale said.
The three brothers have pleaded not guilty. A preliminary hearing is scheduled for Jan. 23 in Los Angeles Municipal Court.
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