California Department of Insurance

Father, Son Arrested for $12M Workers Comp Scam at San Jose Businesses

A father and son who are the owners of two commercial cleaning companies in San Jose were arrested this week after state officials allege they underreported $12 million in payroll to save on paying workers compensation insurance. Edgardo Cabrales Sr., 61, and his son, Edgar Cabrales Jr., 36, are charged with five felony counts each of insurance fraud, following an investigation by the California Department of Insurance. The investigation into the Cabrales' companies, Pine Building Maintenance and Network Facility Management, began after officials suspected the businesses of fraud.

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