April 28, 2025 | MedLegalNews.com – Sacramento, CA — California Janitorial Services Owner: On April 23, 2025, Martha Toro, owner of MT Janitorial Services, pled no contest to felony charges of insurance fraud and tax evasion. The Honorable David Bonilla sentenced her to 270 days in county jail and two years of formal probation for each violation. In addition, Toro must pay $1,454,130 in restitution, fines, and interest. Of this amount, $848,370 goes to Markel Insurance, while $605,760 is owed to the Franchise Tax Board (FTB).
Fraud Scheme Spanning Years
In February 2020, the California Department of Insurance (CDI) launched an investigation after Markel Insurance flagged suspicious activity. Toro had significantly under-reported her employee count to lower her workers’ compensation premiums illegally.
A joint investigation by CDI and FTB revealed that between 2013 and 2020, Toro consistently misrepresented her payroll data. As a result, Markel Insurance suffered losses exceeding $800,000. Meanwhile, the FTB discovered that Toro falsified her state tax returns between 2016 and 2020 to avoid paying taxes.
Broader Impact on Californians
Tax evasion harms every Californian by reducing critical funding for public services. Cracking down on underground economic activity, like Toro’s, helps close the state’s growing tax gap.
Insurance fraud also creates serious risks for workers. By lying about her workforce, Toro left employees vulnerable if injured on the job. Moreover, her illegal actions gave her business an unfair advantage, allowing her to undercut legitimate companies and harm fair competition. California Janitorial Services Owner
Source: Sacramento County District Attorney’s Office
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