Underreporting Payroll Leads to Workers Comp Fraud Charges

A Memphis businessman was recently indicted on criminal fraud charges of underreporting his payroll for his labor subcontracting companies to deprive insurance companies of more than $1 million in workers compensation premiums.

The individual reportedly had a suitcase packed and was preparing to leave town when authorities took him into custody. (WCxKit)

The man is the owner of Xpress Services, Express Services, Labor Fast, Fast Track Systems and CSI Services, Inc. The companies provide workers for a variety of construction jobs, mostly for drywall work.

Authorities report the man had some 110 employees, but only claiming having half that many and paid no workers comp on the others. The alleged offenses occurred between January 2006 and July of this year. (WCxKit)

He was indicted on four state counts of workers comp fraud over $60,000, felonies that carry up to 12 years behind bars on each count.

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact: Info@ReduceYourWorkersComp.com or 860-553-6604.

WORK COMP CALCULATOR: http://www.LowerWC.com/calculator.php

MODIFIED DUTY CALCULATOR: http://www.LowerWC.com/transitional-duty-cost-calculator.php

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers comp issues.