San Jose Security Company Owner Sentenced In $3.4 Million Workers’ Compensation Fraud Case

SAN JOSE, Calif. — The owner of a San Jose-based security company, Raul Chavez, 40, was sentenced after a California Department of Insurance investigation uncovered a six year-long scheme to underreport payroll and avoid paying workers’ compensation insurance premiums.  

Chavez pleaded guilty to felony premium fraud and was sentenced to 180 days in county jail, two years of formal probation, and ordered to pay $225,168 in restitution to the State Compensation Insurance Fund (State Fund). Chavez has paid his restitution and served his jail time on electric monitoring.

Read the entire press release. California Department of Insurance, May 19, 2025