Two Milford, Massachusetts business owners were reportedly charged with intentionally misreporting their total payroll and workforce in an effort to avoid paying their fair share of workers’ compensation insurance premiums. According to Attorney General Maura Healey, the two individuals operated three roofing companies that were formed between 2008 and 2014. The business owners allegedly avoided paying over $600,000 in insurance premiums due to their intentional underreporting of the risks associated with each worker’s job duties. The owners’ fraud purportedly placed the workers’ compensation insurers that provided their businesses with coverage at an undisclosed higher risk for paying injury benefits.
Combined, the two business owners were indicted on seven counts of workers’ compensation fraud and four counts of larceny. The indictments were handed down by a Worcester grand jury after the Insurance Fraud Bureau of Massachusetts referred the cases to Attorney General Healy’s office. Healy stated insurance fraud such as that purportedly committed by the 31-year-old man and 29-year-old woman not only undermines the integrity of the Commonwealth’s workers’ compensation system but also places an undue burden on honest employers.