It Runs in the Family

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Closeup rear low angle view of an early 60's senior gentleman having some back pain. He's at doctor's office having medical examination by a male doctor. The patient is pointing to his lumbar region.

All is not as sunny as it should be in the city of San Ramon, Calif. A mother and son duo recently pleaded guilty to conspiracy to commit insurance premium fraud, along with a white collar crime enhancement.

Selina Singh and Kabir Singh admitted to their roles in a scheme to commit tax and insurance fraud. Kabir’s father and Selina’s husband, Manjinder Paul “MP” Singh, was also charged last year, but remains unable to be found. (He has a warrant out for his arrest. Nothing says ‘loving family man’ like leaving them on the hook for the crimes he helped commit.)

The Singhs owned and operated Bara Infoware and Federal Solutions Group. Both companies had contracts with the Department of Defense and the U.S. Military. (Double the money, double the fraud.) Under their supervision an employee hurt themselves while carrying out a contract at a military installation in Monterey County.

They instructed the employee to not report the injury, as they knew it would lead to an investigation which could expose their illegal wrongdoings. The Singhs had been illegally underreporting their payrolls to avoid paying $2 million in insurance premiums. (That’s what we call workers compensation fraud.)

The family would routinely instruct employees not to report injuries to avoid paying insurance fees. They went as far as bribing the employee to pretend the injury never occurred and to not report it. (I don’t know about you, but it would cost a pretty penny to get me to ignore egregious injuries.)   

An investigation was launched after a Bara employee severed his thumb while working for the company at Fort Hunter Liggett. Selina Singh told him to lie and say it occurred while working for their other company Federal Solutions Group. (The only thing you’re supposed to ask a man with a severed thumb is if he wants to go to the hospital.)  This caused the employee to issue a report with the Monterey District Attorney.

Workers compensation coverage is mandatory in California and not paying insurance premiums puts workers at risk. Premium fraud can also lead to unbalanced competition as companies can bid for work at a lower cost by avoiding the cost of workers compensation coverage. By providing false information to insurance companies, the Singhs undermined the integrity of a system meant to protect workers. (You can see a lack of integrity runs in the family with the way Manjinder Singh ran for the hills.)

The family was charged in 2018 with money laundering, fraud, and conspiracy to commit fraud. As part of their plea deal, the Singhs will serve a year of house arrest in their California home and pay more than $500,000 in restitution and fees. A majority of the restitution payments will go to the Employment Development Department. Sentencing is scheduled for November 19.

Today’s Fraud of the Day comes from an article, “San Ramon defense contractors admit to insurance fraud scheme, will serve a year of house arrest, pay $500,000,” published by The Mercury News on September 2, 2020.

MARTINEZ — A mother and her son will serve a year of house arrest and pay a total of more than $500,000 in restitution and fees, as part of a plea deal with Contra Costa prosecutors to settle an insurance fraud case, the District Attorney announced Wednesday.

Selina Singh, 57, and Kabir Singh, 30, pleaded guilty Tuesday to conspiracy to commit insurance premium fraud, along with a white collar crime enhancement, as part of the plea deal. Most of the restitution will go to the Employment Development Department “for underpayment of tax liability,” court records show.

 

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.