Gina Marie Gregori has been charged by the California Department of Insurance (“CDI”) with underreporting payroll to save $32 million on workers' compensation insurance premiums. Ms. Gregori was charged with 19 felony counts.

According to CDI detectives, over a seven-year period Ms. Gregori, owner of GMG Janitorial, GMG Billings, and Apex Janitorial Solutions, falsified documents and underreported payroll to her workers' compensation insurance company. The CDI said that its investigation revealed that Ms. Gregori was keeping two sets of books, using a payroll processing service to report to the Employment Development Department and pay her employees, and keeping a fraudulent set of books that she provided to insurers and insurance auditors, which showed a significantly lower payroll amount.

“People often make the mistake of thinking insurance fraud is a victimless crime – it is not,” said the CDI's commissioner, Dave Jones. “When business owners cheat the system by operating in the underground economy, they create an unfair advantage that puts legitimate business at risk.”