A retired San Jose Police officer who owns a safety enterprise pleaded no contest to insurance coverage fraud, tax evasion, cash laundering, and employee exploitation and is predicted to be sentenced to 3 years in jail, prosecutors stated.
Robert Foster, who retired from the San Jose Police Division after he was charged within the case in July 2020, owns Atlas Non-public Safety with Mikaila Foster, his spouse, who additionally pleaded no contest and is predicted to be sentenced to 1 yr in jail and 5 years of probation, stated Santa Clara County District Lawyer Jeff Rosen.
Foster began the corporate, now referred to as Genesis Non-public Safety, with out the data of the police division, Rosen stated.
The couple illegally lowered their insurance coverage premiums and taxes by reporting false payroll, paying workers off-the-books, and underreporting worker accidents. The Fosters additionally did not pay workers additional time and dissuaded them from reporting on-the-job accidents and wage-theft violations, Rosen stated.
In a single case, an “off-the-books” safety guard suffered extreme accidents throughout a crash whereas driving an Atlas safety car. Robert Foster responded to the guard’s $1 million medical invoice by telling the insurance coverage firm that the guard was not an Atlas worker. Investigators discovered data exhibiting that the guard was driving an Atlas car and carrying an Atlas uniform on the time of the collision.
“Exploitation takes an enormous toll on staff,” District Lawyer Jeff Rosen stated. “Our Workplace doesn’t tolerate the victimization of staff and can prosecute these accountable – irrespective of who they’re.”
The investigation additionally uncovered the couple used a subcontractor that had no data of the workers’ hours, wages, or schedules. The opposite firm merely moved cash from the Fosters’ agency to the workers in order that the Fosters might keep away from paying their justifiable share of taxes, staff’ compensation insurance coverage, and additional time wages, Rosen stated.
Robert Foster will even be ordered to repay $1.13 million to Everest Nationwide Insurance coverage and the Employment Improvement Division, Rosen stated. His sentencing is scheduled for Feb. 25.
Mikalia Foster’s sentencing is scheduled for April 29.
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