Court Upholds Warrantless Search Condition for Premium Fraud Conviction

A California appeals court found no problem with an order requiring a business owner convicted of cheating a work comp carrier and state tax collectors to submit to warrantless searches as a term of probation. Rene Cabrera Pavon reported no payroll from December 2018 through May 2022. His company, which is not described in the court decision, actually had a payroll of $4.6 million over this period. As a result of underreporting payroll, Pavon shorted State Compensation Insurance Fund $1.2 million in premiums the carrier would have charged had he reported accurate figures. He also owed the Ca...