Wednesday, October 28, 2020

San Jose police officer charged with laundering $18 million

-

A San Jose police officer used a private security company to evade taxes, steal wages, commit insurance fraud and launder more than $18 million, authorities said Friday.

Officer Robert Foster, a 47-year-old Morgan Hill resident, used and traded on his protected status as an active-duty police officer to further his business interests — all while concealing his company from the San Jose Police Department, according to the Santa Clara County district attorney’s office.

On Friday, prosecutors charged Foster, along with his wife, Mikaila Foster, and eight other employees at Atlas Securities, with four counts of felony conspiracy to commit insurance fraud, unemployment insurance fraud, money laundering and wage theft, as well as 39 other felonies, including extortion.

Foster’s attorney declined to comment Friday, saying he still needed to review the case.

- Advertisement -

Over six months ago, the district attorney’s office — in collaboration with several state departments — launched a probe into the company, which Foster allegedly did not disclose to the San Jose Police Department. Police did not respond to a request for comment on the charges.

The investigation found that Foster and his employees reduced insurance premiums and taxes by reporting false and inaccurate payroll information, under-reporting head count, paying employees off the books and not reporting employee injuries, prosecutors said.

In one incident, an employee was allegedly threatened with deportation if she continued to speak to attorneys about her worker’s compensation rights after she was injured on the job.

The company also allegedly hid approximately $8.09 million in payroll over three years and avoided approximately $579,000 in tax liability and $560,000 in insurance premiums. To carry on the fraud scheme, Atlas employees allegedly laundered approximately $18.2 million.

- Advertisement -

On July 21, District Attorney Jeff Rosen announced a series of criminal and social justice reforms that included a Workers Exploitation Task Force.

“This Office will root out and prosecute anyone — whether they wear a badge or not — taking criminal advantage of workers,” Rosen said in a statement. “Our new task force will protect and heal the victims of labor trafficking, wage theft and illegal exploitation and raise awareness about how these insidious crimes are attacks on our communities of color.”

MUST READ

South Korea’s former Vice Justice Minister sentenced to jail for bribery and sexual favors

Former Vice Justice Minister Kim Hak-eui, the figure at the center of one of Korea’s biggest political sex scandals, was placed under pretrial detention...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World

Advertisement
Advertisement

Latest News

This Week

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Former Jacksonville City Council members set for sentencing in fraud case

Former Jacksonville City Council members Katrina Brown and Reggie Brown are scheduled to be in federal court Tuesday to begin a hearing on their...

Beam Suntory Inc. fined $19.6 million in foreign bribery case

Beam Suntory Inc. (Beam), a Chicago-based company that produces and sells distilled beverages, has agreed to pay a criminal monetary penalty of $19,572,885 to...

Namibia probes oil firm Acer petroleum over bribes paid to government officials

THE mines and energy ministry says it is investigating allegations that an oil company bribed some senior officials to fast-track licence applications. The senior officials...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks