BUSINESS OWNER CHARGED WITH $120,000 INSURANCE AND TAX FRAUD AND FAILING TO PAY EMPLOYEES PREVAILING WAGE ON PUBLIC WORKS CONTRACTS

For Immediate Release
Case # 13CF3627
             





December 4, 2013

Susan Kang Schroeder
Chief of Staff
Office: 714-347-8408
Cell: 714-292-2718

Farrah Emami
Spokesperson
Office: 714-347-8405
Cell: 714-323-4486

BUSINESS OWNER CHARGED WITH $120,000 INSURANCE AND TAX FRAUD AND FAILING TO PAY EMPLOYEES PREVAILING WAGE ON PUBLIC WORKS CONTRACTS

 

SANTA ANA – An Orange County business owner was arraigned today on charges of committing over $120,000 in tax and insurance fraud and failing to pay employees prevailing wage for work performed on two public works contracts. Shamseddin Hashemi-Mousavi, 61, Irvine, is charged with 48 felony counts including taking and receiving a portion of worker’s wage on public works, attempted taking and receiving a portion of worker’s wage on public works, forgery, recording false and forged instruments, willful failure to pay tax, and misrepresenting facts to workers’ compensation insurance company. If convicted, he faces a maximum sentence of 44 years and six months in state prison. Hashemi-Mousavi is being held on $120,000 bail and faces a pre-trial hearing Dec. 10, 2013, in Department C-57, Central Justice Center, Santa Ana.

 

At the time of the crime Hashemi-Mousavi is accused of owning AAA-HVAC, an Orange County-based heating and air conditioning business.

 

Between 2009 and 2012, the defendant is accused of applying for and receiving two public works contracts in Los Angeles County.  For these projects, the defendant is accused of fraudulently paying several of his employees less than prevailing wage in cash or by check and keeping the extra money owed to his employees for himself.

 

The defendant is accused of forging, falsifying, and submitting bank records to fraudulently show that his employees had been paid prevailing wage. He is accused of willfully failing to pay his premium insurance tax and tax to the Employment Development Department. In all, the defendant is accused of committing over $120,000 in insurance and tax fraud.