Massachusetts authorities continue to go after those who would rob the Commonwealth’s workers compensation system.
A Chelsea, Massachusetts man has been indicted on charges he failed to accurately report the total payroll of his business to avoid paying more than $45,000 in insurance premiums, Attorney General Martha Coakley announced.
ElburkeLamson, 50, was indicted on charges of Workers Comp Fraud (2 counts) and Larceny Over $250 (2 counts).
Lamson was operating as the manager of Legal Pro Temps, Inc. (Legal Pro), a now defunct staffing company located in Dorchester.
According to authorities Legal Pro was insured by Atlantic Charter Insurance Company for Workers Comp Insurance and Employers Liability Insurance from November 2007 through November 2009. In an effort to evade high insurance premiums, Lamson allegedly underreported or failed to report his payroll to his insurance company.
According to authorities, and contrary to reports made to his insurance provider, Legal Pro operated with a payroll totaling more than $2 million billed through its vendors, but only reported a payroll totaling more than $184,000. As a result of this premium avoidance scheme, Lamson underpaid his workers comp insurer more than $45,000 in premium payments.
Company Put at Risk
Based on his reporting, Lamson was granted a lower premium rate on his policy. As a result of this alleged scheme, Lamson put Atlantic Insurance unknowingly at risk to cover any undisclosed employees for injuries that occurred or may have occurred during the policy periods.
A Suffolk Superior Grand Jury returned indictments against Lamson on Dec. 11. Lamson was scheduled to be arraigned in early January of this year.
Author Kori Shafer-Stack, Editor, Amaxx Risk Solutions, Inc. is an expert in post-injury response procedures and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. www.reduceyourworkerscomp.com. Contact: [email protected].
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