Owner of Ag Company Accused of $2.5M Premium Fraud Scheme

The owner of an agriculture company in Merced was arraigned Monday with his daughter for allegedly underreporting $11 million in payroll to reduce their workers’ compensation premiums by more than $2.5 million, the California Department of Insurance announced. Felipe S. Barocio, 63, is the owner of Agriculture Services Inc. His daughter, Angelita Barocio-Negrete, 33, worked as the office manager. Both pleaded not guilty. The Department of Insurance said State Compensation Insurance Fund reported the suspected fraud in October. The department said its investigation uncovered fabricated ...