Owners of Hotel Cleaning Firm in California Charged with $7M Workers’ Comp Fraud

The owners of a janitorial company serving luxury hotels in Southern California and Nevada have been accused of running a $7 million workers’ compensation insurance and tax evasion scam.

Hyok “Steven” Kwon and Woo “Stephanie” Kwon were arrested in December with bail set at $1 million each, according to the San Diego County district attorney’s office.

The couple own Irvine-based Good Neighbor Services. Prosecutors say they concealed the existence of at least 800 employees to avoid paying millions in payroll taxes and workers’ comp insurance.

The company’s website says its clients include the Westin, Hyatt, Hilton, Ritz-Carlton, Four Seasons, Omni, Marriott and Sheraton hotel chains, and other hotels including the MGM Grand in Las Vegas.

The website says the company has offices in San Francisco, Santa Barbara, Los Angeles, Orange County, San Diego, Las Vegas and Atlanta.

The Kwons are charged with insurance fraud, tax evasion and extortion. They each face up to 31 years in prison if convicted.

Six other people also have been charged in the alleged scheme.