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Wildomar Father And Son Convicted In Workers' Compensation Fraud Case

Steven Morales, 65, and Brian Todd Morales, 44, have both been found guilty in a large-scale workers' compensation fraud case.

In what the Riverside County District Attorney’s Office believes is possibly the largest workers’ compensation premium fraud case to ever go to trial in the county, a jury Friday convicted a Wildomar man of five felonies that resulted in $3.1 million in losses to the state and an insurance company.

Steven Morales, 65, was convicted of three counts of workers’ compensation fraud and one count each of tax fraud and perjury, according to Riverside County District Attorney’s Office spokesman John Hall. The jury also found him guilty of a special enhancement of taking in excess of $500,000, Hall said.

Morales is scheduled to be sentenced Oct. 15 at the Hall of Justice in Riverside and faces a potential sentence of 17 years and four months in state prison.

At the sentencing, the DA’s Office will ask the judge to order Morales to pay $3.1 million in restitution, Hall said.

Morales’ son, 44-year-old Brian Todd Morales, also of Wildomar, pled guilty in the same case in January 2010 to the three workers’ compensation fraud counts and one tax fraud count; he was sentenced in April 2010 to four years in prison and ordered to pay $3.1 million in restitution, Hall said.

The case was the result of a 13-month investigation by the Riverside County DA’s Bureau of Investigation in a partnership with the state Employment Development Department and special investigation units of the victimized insurance company.

“In 2008, state EDD became aware of possible fraud involving companies owned and operated by Steven and Brian Morales. The men formed and used various names for their businesses, such as Shelby Framing and Shelby Development, in order to hide payroll and to keep from paying workers’ compensation premiums, but it always primarily was Shelby Framing,” Hall said.

“The investigation determined that the Morales’ had been cheating more than 400 employees out of insurance premiums for unemployment insurance from 2005 through 2008,” Hall continued. “The defendants had not been reporting worker injuries while also underreporting the number of employees, or even reporting no employees, in the various company names.”

According to Hall, approximate monetary losses in the case were as follows:

--$1.7 million to the State Compensation Insurance Fund

--$1 million to the state Employment Development Department

--$300,000 to Granite State Insurance Company

Being Honest September 27, 2012 at 06:02 AM
Reckoning...how dare you take and associate those men as owners. Passing the buck...once again. I can only speak for a few and say they had absolutely nothing to do with those crimes. You'll be lucky to not have a character defamation lawsuit filed against you. As for the second part of your post, it's just simply not worth it. Not because I agree, but because you are clearly a family member and you will continue to defend them. WWJD is right. I'm out!
Teller of Truth September 27, 2012 at 06:06 AM
I never said anything about these clowns. That was "Telling the Truth" not me. So don't expect an answer from her if you can't even get our names straight. Maybe YOU need to get your facts straight dillweed.
Teller of Truth September 27, 2012 at 06:13 AM
WWJD, try and re-read it right next time. Someone said they were praying for "justice" . That is not blasphemous like you wrote. It is what was right! "Ask and you shall receive".BTW why are YOU on this web site then? Weak...
The Reckoning May 02, 2013 at 12:56 AM
So you are Being Honest?? Not ***REALLY*** Somebody has been lying to you... Take a look and tell me what you think??... http://i44.tinypic.com/35a22qb.jpg [IMG]http://i44.tinypic.com/35a22qb.jpg[/IMG] There will soon be a day of RECKONING for you man!
The Reckoning May 02, 2013 at 01:09 AM
So Kerry Holmes and Cronies... Did you not sign that paper as OWNER of SHELBY?? You're NOT an OWNER?? Come on Kerry Holmes... BE A MAN!! Step up to your CRIMES!!!!!!


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