Owners of California Hotel Cleaning Firm Plead Guilty to Workers’ Comp Fraud

April 17, 2017

The owners of a cleaning company serving luxury hotels in Southern California and Nevada have pleaded guilty in connection with a nearly $7 million insurance and tax scam.

Hyok “Steven” Kwon and his wife, Woo “Stephanie” Kwon, owned Irvine-based Good Neighbor Services.

They were accused of concealing the existence of 800 employees over nearly a decade to avoid paying millions in payroll taxes and workers’ compensation insurance.

Steven Kwon pleaded guilty to felony charges related to fraud and employment tax evasion last month. He was sentenced to eight years in prison.

His wife admitted to similar charges in December and was given more than six years in prison.

She’s now serving part of her term on probation.

Several others were charged in the case.