For release on April 16, 2016   CONTACT:
Christopher Kwok, Deputy District Attorney
Insurance Fraud Unit
Economic Crimes Group
(408) 792-2916           OWNER AND OPERATOR OF A TILE AND FLOOR RETAILER-REMODELING COMPANY  CHARGED WITH INSURANCE FRAUD   The owner and operator of The Floor Center, a tile and floor retailer and  remodeling company in Santa Clara, has been charged with Workers’ Compensation Insurance Fraud.    Ahmad Molaie, 61, of San Jose, was arrested on April 15, 2015 on one felony count of Workers’ Compensation Premium Insurance Fraud. Molaie faces up to six years of incarceration if convicted and would be ordered to pay full restitution. Molaie has posted $10,000 bail and will be arraigned on April 27, 2015.   An investigation showed that between 2011 and 2014, Molaie grossly underreported his company’s payroll. Molaie also misrepresented the nature of his business to his Workers’ Compensation insurance carrier by claiming The Floor Center was only a flooring retailer when it also handled remodeling construction projects. His alleged claims resulted in paying $117,248 less in premiums.   "Business owners who unlawfully cheat the Workers' Compensation Insurance system gain an unfair business advantage over their competitors," Deputy District Attorney Christopher Kwok said. "It hurts honest employers that play by the rules."   California law requires every business with employees to maintain Workers’ Compensation Insurance.  The assessed insurance premium is based on a number of factors, including the nature of the business, safety record, and the employees’ wages reported by the employer.   ###

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