2 San Ramon Residents Admit To Tax Fraud Scheme, Prosecutors Say

SAN RAMON, CA — Two San Ramon residents are facing up to 11 years and eight months in prison after they pleaded guilty to conspiracy to commit insurance premium fraud and other felony charges.

Selina Singh, 57, and Kabir Singh, 30, are accused of evading more than $2 million in insurance premiums for their business by misrepresenting to insurance carriers that their construction employees were in less dicey jobs, such as clerical and consulting work, according to the Contra Costa County District Attorney's Office.

The Monterey County District Attorney's Office first caught wind of the operation after a construction worker severed his thumb at a job site at Fort Hunter Liggett in southern Monterey County. Selina Singh told him to report that the injury occurred while working for the family's other company: Federal Solutions Group, prosecutors said.

The Monterey County DA's Office determined the companies were based in San Ramon and opened a joint investigation with officials in Contra Costa County and at the state, prosecutors said.

On another occasion, a worker was asked not to report their injury, prosecutors said. Kabir Singh offered to pay the expenses instead, prosecutors said.

A third company, Eagle Solutions, was used to move money between Bara Inforware and Federal Solutions Group, prosecutors said. Eagle Solutions also obtained workers compensation for non-construction jobs, though workers were in the construction field, prosecutors said.

Workers compensation coverage is required in California. Employees working for companies committing fraud are at risk themselves, as their medical care claims could be denied due to an employer's false reporting, prosecutors said.

"Premium fraud creates unfair competition in dangerous industries, as law-abiding business owners are outbid by competitors that unlawfully evade the cost of coverage at the expense of their workers," the DA's Office wrote.

The Singhs will be sentenced before Judge Laurel Brady Nov. 19, prosecutors wrote.

Insurance fraud can be reported to the DA's Office at DA-ReportFraud@contracostada.org.