San Mateo businessman Nam Le has pleaded no contest to charges of insurance fraud and money laundering for his involvement in a multi-million dollar scam involving the security firm run by former San Jose Police officer Robert Foster, as reported by KTVU journalist Henry K. Lee's Twitter. Le reportedly used his company to hide payroll for Atlas Private Security, the security firm owned and operated by then-San Jose Police Officer Robert Foster, leading to the laundering of $18 million.
This development comes as part of an ongoing case that first gained attention on June 30, 2020, when KTVU reported that the Santa Clara County District Attorney's office had charged Robert Foster with insurance fraud, tax evasion, wage theft, and money laundering to the tune of $18 million. Foster, who also owned and operated Atlas Private Security, and his wife Mikaila Foster, were accused of using Robert Foster's position as a police officer to further their business interests.
Despite these accusations, Foster allegedly failed to disclose to the San Jose Police Department (SJPD) that he owned and operated Atlas or that such ownership could result in ethical conflicts. KTVU's reporting from 2020 indicated that the investigation uncovered Foster's hiding of about $8 million in payroll over three years, avoidance of nearly $600,000 in tax liability, and $560,000 in insurance premiums.
It has been a long road, as by March 29, 2022, Robert Foster had been formally sentenced to three years in jail for illegally reducing insurance premiums and avoiding paying his fair share of taxes while running the security firm with his wife. Mikaila Foster was sentenced to a year in jail. Now, Nam Le's no contest plea further unravels the intricate scam.
According to the initial 2020 KTVU report, Fosters and their accomplices, including Le, allegedly reduced insurance premiums and taxes by reporting false and inaccurate payroll, underreporting headcount, paying employees off the books, and underreporting employee injuries. Atlas employees allegedly laundered approximately $18 million since 2015. Even more alarming, the Fosters and their co-conspirators reportedly threatened employees with deportation if they sought legal help regarding workers' compensation claims.
District Attorney Jeff Rosen's statement from 2020 regarding the Foster's arrest underlined the importance of rooting out and prosecuting anyone taking criminal advantage of workers, whether they wear a badge or not.
