INDICTMENT TRANSCRIPTS UNSEALED AGAINST FATHER AND SON FOR $300,000 THEFT OF EMPLOYEE WAGES ON PUBLIC WORKS PROJECTS

For Immediate Release
Case # 14ZF0330






March 17, 2014

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

INDICTMENT TRANSCRIPTS UNSEALED AGAINST FATHER AND SON FOR $300,000 THEFT OF EMPLOYEE WAGES ON PUBLIC WORKS PROJECTS

 

SANTA ANA – Grand jury transcripts were unsealed today in an indictment against a father and son for embezzling over $300,000 from employee wages on public works jobs. Daniel Jacob Siapin, 58, and his son Gabriel Daniel Siapin, 35, both of La Habra Heights, were indicted by the Orange County Grand Jury on Feb. 25, 2014, on 28 felony counts of taking and receiving a portion of worker’s wage on public works with a sentencing enhancement for property loss over $200,000. If convicted, they face a maximum sentence of 24 years in state prison. The defendants are out of custody with $120,000 placed in a trust account in lieu of bail and are scheduled for a pre-trial hearing May 2, 2014, at 8:30 a.m. in Department C-5, Central Justice Center, Santa Ana.

 

At the time of the crime, Daniel Siapin owned Siapin Horticulture, a landscaping, irrigation, and maintenance company, which he ran with his son Gabriel Siapin.

 

The defendants are accused of violating the law on a public works job, which requires a minimum “prevailing wage” be paid to workers. Prevailing wage consists of a base salary and “fringe benefits,” or benefits in addition to base pay such as vacation pay and pension money. Fringe benefits must be paid directly to the worker or may be put into a fund for later withdrawal by the worker if they do not work a full 40 hours a week.

 

The California Labor Commissioner’s office and the Orange County District Attorney (OCDA) received a complaint alleging underpayments of prevailing wages to workers on the Lakeside Middle School alterations project located in Lakeside, California.  In a collaborative effort, the California Labor Commissioner provided Orange County with evidence to support allegations of underpayments of fringe benefits to workers on three different projects, including Lakeside.  

 

In February 2010, the City of Los Angeles compliance division assessed penalties and wage fines against the defendants’ company for not paying their employees the prevailing wage on a public works job. A civil assessment was levied against the defendants.

 

In June 2010, both Daniel and Gabriel Siapin are accused of meeting with employees and offering to contract with a third party administrator to hold the employees’ fringe benefits in a savings account.

 

Between 2011 and February 2013, Siapin and Siapin are accused of failing to deposit over $300,000 in employee fringe benefits into the savings account from work performed in Orange County and other Southern California counties. The defendants are accused of embezzling the money.