The husband and wife owners of temporary staffing companies with offices in northern and central New Jersey were arrested on charges of grossly underreporting the number of employees their companies outsourced, and allegedly hiding more than $30 million of income, which resulted in the underpayment of their workers’ comp insurance premiums and income tax.
New Jersey's Acting Attorney General John J. Hoffman and Acting Insurance Fraud Prosecutor Ronald Chillemi announced the charges against Andres Minaya, 48, and Jenny Minaya, 29, owners of temporary staffing companies doing business as Olympus Management Services, Atlantis Personnel and other names.
“The defendants had a legal responsibility to provide adequate and lawful workers’ compensation coverage for employees,” said Hoffman. “Not only did they allegedly steal millions from the United States and New Jersey taxpayers, they failed to pay for the appropriate protections for their employees.”
Search warrants were executed at five Olympus locations and at the office of AM Professional Services, a tax preparation company allegedly owned by the Minayas. Authorities reportedly seized various financial documents and electronic devices related to the alleged crimes, and the state has frozen both the personal and corporate bank accounts controlled by the couple.
In addition, the couples’ $1.5 million home was also seized because it was allegedly purchased with illicit funds.
“The most elaborate corporate shell game can still boil down to a simple case of fraud by people who are too greedy to pay their bills and taxes,” said Chillemi.
The Minayas were each charged with first-degree financial facilitation of criminal activity. Andres Minaya was also charged with second-degree insurance fraud and filing a false return.
Authorities also arrested the Minayas’ nephew, Randy Colon, 34, who is purported to have purchased Olympus Management from Andres Minaya, allegedly in furtherance of the workers’ compensation insurance fraud scheme. Colon was charged with second-degree insurance fraud.
The investigation began when the state was alerted by Liberty Mutual Insurance Company, which conducted an audit of Andres’ staffing company (then called Atlantis Personnel), which carried workers compensation coverage through Liberty from May 2011 through February of 2013.
During the audit, Liberty allegedly found gross misrepresentations by Andres concerning the number of employees Atlantis outsourced and total employee salaries.
Andres supplied federal tax returns and partial bank statements which were allegedly inconsistent with the amount of business he claimed he did in New Jersey.
After the audit, Liberty adjusted the premium owed by Minaya by approximately $1 million. Minaya allegedly did not pay and instead canceled the policy and created a new company under the Olympus name. The OIFP and the New Jersey Department of the Treasury, Office of Criminal Investigation opened a joint investigation ultimately resulting in the searches and arrests.
It is alleged that from 2009 to 2013, Minaya and his companies received approximately $50 million from a factoring company in exchange for their accounts receivable. During that period, Minaya and his associated companies reported approximately $15 million total personal and corporate income.