Southborough Woman Ordered to Pay $62,802 After Hidden Payroll Workers’ Comp Fraud Case

The case against a Southborough woman was continued without a finding for eighteen months and she was ordered to pay $62,802 in restitution to The Hartford.  The Southborough woman was charged with one count of workers compensation fraud and one count of larceny for her involvement underreporting employees and payroll of a Southborough construction company in a hidden payroll scheme.  An audit of the business was conducted on April 2, 2019, for the policy period March 11, 2018, through March 11, 2019.  The only employees reported as working at the Southborough construction company at that time were the owner, and the Southborough woman.

A workers’ compensation claim was filed for an employee at the Southborough construction company, which occurred April 22, 2019.  Investigation revealed that the employee had been an employee of the Southborough construction company since February 2, 2019.  He was never disclosed to the insurer during the April 2, 2019 audit.  Additionally, the Southborough construction company failed to report that the company maintained the Bank of America account which was used to pay undisclosed employees.  During the 2018 to 2019 policy period, the Southborough construction company employed twenty-five employees in addition to the owner and the Southborough woman.  The unreported payroll was $534,320.