Hotel cleaning company owners plead guilty to $7M fraud

Updated April 10, 2017 - 5:18 pm

SAN DIEGO — 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.

The San Diego Union-Tribune reports 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.

According to a story the Union-Tribune posted on its website, the hotels included Hotel Del Coronado, the Loews Coronado, La Costa Resort and Spa, the Grand Del Mar, L’Auberge Del Mar, The Ritz Carlton, Four Seasons, and the Hilton and Hyatt hotel chains.

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, but she’s now serving part of her term on probation.

Several others were charged in the case.

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