Los Angeles News

E-mail

Close Window E-mail This Page

3 Charged In Nearly $11M Workers' Comp Fraud Case

Required fields are marked with an asterisk(*)

Recipient E-mail:*
- Your Name:*
- Your E-mail:*
Add a Message:
Send me a copy of this e-mail.

Type the characters in this picture:*

Click here to refresh with new letters

The information you provide will be used only to send the requested e-mail and will not be used to send any other e-mail communications. Read more in our Privacy Policy

Send E-mail

Print Share + Comments

Oct 18, 2006 6:38 pm US/Pacific

3 Charged In Nearly $11M Workers' Comp Fraud Case

LOS ANGELES (CBS) ―

Click to enlarge 1 of 1: Cover-All Inc. President Gad "Gadi" Leshem, 59; and Zeev Golan, the company's vice president, 54, were arrested at their Northridge homes, Deputy District Attorney Michael O'Gara with the Healthcare Fraud Division said.
CBS

Close

numSlides of totalImages

The president and vice president of a Chatsworth-based flooring company were arrested Wednesday on charges of bilking the state's workers' compensation fund out of nearly $11 million in premiums.

Cover-All Inc. President Gad "Gadi" Leshem, 59; and Zeev Golan, the company's vice president, 54, were arrested at their Northridge homes, Deputy District Attorney Michael O'Gara with the Healthcare Fraud Division said.

Also arrested was Golan's wife, Irit Golan, who served as the company's corporate secretary and payroll supervisor, according to the prosecutor.

The three are accused of conspiring to under-report the true amount of the company's payroll by more than $31.8 million, which resulted in their workers' compensation premiums being reduced by more than $10.9 million between September 2001 and April 2006, according to the District Attorney's Office.

The State Compensation Insurance Fund's Special Investigation Unit opened an investigation into the firm.

The three, being held in lieu of a total of $6.5 million bail, are charged with four counts of insurance fraud and one count of conspiracy to commit insurance fraud. All the charges are felonies.

The company is also charged with four counts of insurance fraud. Cover-All Inc., which has corporate offices in Chatsworth, is in the business of installing carpeting and flooring as a subcontractor for businesses such as Home Depot. It has 50 offices in 17 states.

Zeev Golan is scheduled to be arraigned tomorrow at the downtown Los Angeles courthouse, while Leshem is set to be arraigned Friday. It was unclear when Irit Golan or the company would be arraigned.