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Posh Bagel founders arrested on allegations of insurance fraud

Original post made on May 3, 2010

The owner and founder of several Bay Area bakeries has been arrested on suspicion of failing to report employee injuries and accurate hours worked, according to the California Department of Insurance.

Read the full story here Web Link posted Monday, May 3, 2010, 9:07 AM

Comments (26)

Posted by The Eye
a resident of Old Mountain View
on May 3, 2010 at 11:43 am

I'd be willing to bet there are a lot more things to be discovered, as well. In the few times I'd gone in there, my wife and I often wondered why we suffered from gastric distress after having their food. Now we know there could have been all sorts of things in it. Bye Bye, Posh Bagel.


Posted by Catherine
a resident of Willowgate
on May 3, 2010 at 12:56 pm

Posh has won "Best Of" Mountain View most years in the recent future. We've always found the staff there very nice and kind, and have had no issue with the food.

We'll see what happens - Posh Bagel is a mainstay of our weekends!


Posted by Haha
a resident of Old Mountain View
on May 3, 2010 at 1:35 pm

Posh Bagel Owner - "Best Insurance Fraud Committer" for 2010...


Posted by parent
a resident of Waverly Park
on May 3, 2010 at 2:54 pm

Darn, they have the best chocolate chip bagels!


Posted by Thom
a resident of Jackson Park
on May 3, 2010 at 3:11 pm

I'd be willing to bet Posh isn't the only company out there hiding money or taking advantage of 'the system'. When you hire illegal's for lower wages and don't reprt it... stuff happens. I hope to see more company's investigated and brought to justice.

I know for a fact Posh had/has illegal's working there. An employee was working there and appeared quite sick. I said she should take a sick day. She told me they have no sick days. She also said if she missed a couple of days they would replace her.


Posted by Marshall
a resident of Old Mountain View
on May 3, 2010 at 3:15 pm

A friend's daughter worked there a while a few years ago.

Even after working there less than a month, she had stories that scared us away from ever visiting there again!


Posted by curious
a resident of Cuesta Park
on May 3, 2010 at 4:18 pm

This shows the ridiculous over-regulation of California businesses. I do not condone mis-reporting but this should be a civil matter between them and their insurance company. But, this being California, the government gets involved and the owners get arrested!

Is it any wonder businesses are leaving the state in droves and we have 12.5% unemployment and God knows how high underemployment. The message being sent here is 'Small business, come to California, start a business, be subjected to endless regulations and, if you mess up,get arrested.' Would you start a business under these conditions?


Posted by Sal
a resident of Whisman Station
on May 3, 2010 at 5:11 pm

I think this is the kind of "business" we would want to leave the state and country.

It's not the insurance company that gets hurt in the end, its the employees.

Keeping two sets of books is not "messing up" - it's a intentional crime.

Do you consider drug dealers to just be business owners that "messed up"? What's the difference between them and what these Posh people are accused of doing?... They both do their crime for short term gains, knowing that it will hurt others.



Posted by Dave
a resident of Willowgate
on May 3, 2010 at 6:02 pm

Posh Bagels shouldn't be taking advantage of illegal aliens. They have rights and should be protected by the State.


Posted by John
a resident of another community
on May 3, 2010 at 6:50 pm

It's funny how the right try to make everything about illegal aliens now...

...isn't this more due to the failings of the past Republican administration?

=)


Posted by Maria
a resident of Shoreline West
on May 3, 2010 at 7:31 pm

Ok, let me clear this up for you guys. The owner from Posh Bagel Mountain View is NOT Jeffrey Michael Ottoveggio. There is a different person that owns that store in Mountain View. So, you guys are getting this all mixed up. There is nothing wrong with the Posh Bagel in MV. The difference is that the Posh Bagel in Mountain View is franchise, and all of this information has absolutely NOTHING to do with that Posh Bagel. This is a different Posh Bagel they are talking about.


Posted by Tracy
a resident of Old Mountain View
on May 3, 2010 at 7:33 pm

I love their crepes as long as their open I will be getting my pesto crepe.


Posted by Sophie
a resident of Castro City
on May 3, 2010 at 7:34 pm

Yeah, I have been to posh bagel for a long time & the people there are great. The service is excellent, I haven't had any problems there whatsoever. And I will still continue to go there, no matter what all these people are saying, because I trust the people who work there.


Posted by Heather
a resident of another community
on May 3, 2010 at 7:35 pm

I always go to posh bagel with my kids every weekend to get those delicious nutty strawberry crepes! I can never get enough of those things!


Posted by Morgan
a resident of Castro City
on May 3, 2010 at 7:38 pm

I don't care what everyone says! I'm still gonna go get my yummy mocha freeze & turkey club everyday after school!


Posted by Joshua
a resident of Old Mountain View
on May 3, 2010 at 7:40 pm

I don't think this posh bagel has nothing to do with the one in Santa Clara, because the one in Mountain View donated some bagels to my Senior class last year. I don't know that's my opinion.


Posted by kanank
a resident of Old Mountain View
on May 3, 2010 at 9:53 pm

Your typical business owner the Republicans are fighting for. Business owners' goal is to maximize profit at any cost. Business owners' first priority is their profit margin, ethics and morality are the last things on their minds. Same goes for venture capitalists and investment bankers. Why did we people stoop this low that human lives and suffering ranks well below profit? We are no better than the beasts feeding on blood.


Posted by Seamus
a resident of Old Mountain View
on May 3, 2010 at 11:29 pm

Well, if they're going to arrest the owners for their crimes, they should start with the false advertising. The "bagels" they serve are anything but. They may resemble bagels, but they don't have the proper texture or taste to actually be called bagels. They're more like savory donuts. Izzy's, Noah's, Einstein's, and several other places that boil their dough serve true bagels. Posh, not so much.


Posted by ann
a resident of another community
on May 4, 2010 at 8:33 am

underreporting a payroll to a workers comp insurance company should be a civil matter....not a criminal..and for those of you not in the know....worker's comp insurance premiums are outrageously expensive....and if an employee has a claim.....the employer's premiums go up drastically....more than the amount of the claim....AND 95% of the fraud in the workers comp insurance system....IS COMMITTED BY EMPLOYEES...faking injuries and filing false claims....oh i hurt my back and can't work.....but i can water ski ..party down....now that is ethics and morality for you...i for one will be pulling for the posh bagel to survive this and thrive...


Posted by Daniel DeBolt
Mountain View Voice Staff Writer
on May 4, 2010 at 12:01 pm

Daniel DeBolt is a registered user.

As Maria correctly stated above, Mountain View's Posh Bagel is not owned by the suspects in this story. Errors in the previous iteration of this story have been removed.


Posted by curious
a resident of Cuesta Park
on May 4, 2010 at 12:22 pm

Kanak said: "Why did we people stoop this low that human lives and suffering ranks well below profit? We are no better than the beasts feeding on blood."

Give me a break. This is insurance for goodness sake. And as ann points out, fraud by employees is rampant. Even the Democrat i.e. union and lawyer controlled legislature had to do something about it a few years back.

They agreed to some watered down measures that temporarily lowered the rate of increase. But the lawyers figured out the loopholes and the rates are skyrocketing again.


Posted by Sal
a resident of Whisman Station
on May 4, 2010 at 4:37 pm

LOL - Nice move blaming the employees and unions for the business owners fraud!

If the business had two sets of books, they did not appear to break the law by mistake - they seem to have done so with much planning and coordination.

...and people say they want this kind of business "thrive"!?!

Why would you want a criminal enterprise to thrive? How does that benefit the community?




Posted by Chewbacca
a resident of another community
on May 5, 2010 at 10:51 am

Perfect example of the Voice not doing their homework. Too late now to state this business is not connected with the one allegedly committing fraud, the damage has been done as you can see by these comments.


Posted by phm
a resident of The Crossings
on May 5, 2010 at 2:44 pm

To the Voice: I think you should include a link to this story in tomorrow's Voice Express email and start the link with "CORRECTION" in bold caps so people know there's something new to read here.


Posted by Tax Man
a resident of Blossom Valley
on May 5, 2010 at 2:49 pm

First the H&R Block tax manager shoplifting and Sears and now this crime in good ole MV


Posted by insurance quotes
a resident of Blossom Valley
on May 26, 2010 at 2:40 pm

First the H&R Block tax manager shoplifting and Sears and now this crime in good ole MV

Ha, Ha that's both funny and sad at the same time.


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