The owner of a Lowell, Mass., staffing company was indicted for allegedly under reporting the size and scope of his business operations in order to avoid paying approximately $110,000 in workers compensation premiums, according to Attorney General Martha Coakley’s office
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A Middlesex Grand Jury returned indictments against Dara Duong, 53, of Lowell, on three counts of workers compensation fraud; and two counts of larceny over $250.(WCxKit)
“All employers in Massachusetts have the responsibility of protecting the safety of their employees. We allege that Mr. Duong failed in his duty by knowingly failing to pay the proper amount of workers compensation insurance,” Coakley said.
In October 2010,the Coakley’s office began an investigation after the Massachusetts Insurance Fraud Bureau (IFB) finished its own investigation and referred the matter for prosecution. Duong was the owner of three companies based in Lowell: Middlesex Temporary Agency (Middlesex), Ankgor Staffing, Inc. (Ankgor) and General Labor Services (General Labor). All three companies provided unskilled labor, such as factory workers, to several client companies.(WCxKit)
Authorities allege that from 2006 to 2008, Duong intentionally underreported his companies’ payroll, the total number of employees, and the number of clients his employees worked for, as well as misrepresented job classifications as part of a scheme to avoid paying higher workers comp premiums to two insurance companies. Investigators discovered that based on Duong’s false representations on his insurance policies, he avoided paying approximately $110,000 in workers comp premiums for a total of three policy periods.
Duong is scheduled to be arraigned in Middlesex Superior Court on July 14, 2011.
Editor’s Note: All defendants are presumed innocent until proven otherwise.
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. See www.LowerWC.com for more information. Contact: [email protected].
Book: www.WCManual.com
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.
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