A brother and sister who ran a construction company in Southern California admitted to falsifying payroll records in a $6.3 million premium fraud scheme, the Los Angeles County District Attorney’s Office announced.

Enrique Vera, 49, on Tuesday pleaded no contest to one felony county of workers’ compensation fraud and one felony count of grand theft of labor. Vera owned Ultimate Inc., a construction company in Paramount.

His sister, Gloria Vera, 58, also pleaded no contest to one felony count each of work comp fraud and grand theft of labor. She was the office manager for Ultimate, according to Los Angeles prosecutors.

Under terms of a negotiated plea agreement, the brother and sister are required to pay restitution of $6.3 million to State Compensation Insurance Fund. They will also be required to reimburse the carrier more than $5,000 for investigative costs.

The plea agreement also requires payment of $30,000 in fines, one year of electronic monitoring for both defendants and a requirement to complete 500 hours of community service. If all the conditions are completed, the convictions will be reduced to misdemeanors, and both defendants will be placed on probation for 18 months.

Sentencing is scheduled for Oct. 22, 2020.

The Los Angeles County District Attorney’s Office said the siblings altered payroll records that were submitted to SCIF in order to reduce the premiums they would have to pay for comp coverage. The crimes occurred from Jan. 1, 2012, through March 31, 2017.

Gloria Vera also concealed on-the-job injuries that entitled workers to comp benefits. Enrique Vera also underpaid workers the required prevailing wage as a contractor on a student housing project at the University of California, Los Angeles.