Business Owner Fakes Wages, Charged With $700,000 In Fraud

A painting and construction company was charged with a $700K fraud.

There is a frustrating, widely held belief that workers commit most of the workers’ comp fraud in this country. It couldn’t be further from the truth. My colleagues and I, who are on the front lines of workers’ compensation law, can attest to the fact that we see employers commit more fraud, and when they do, it tends to be far more costly than worker fraud. Just yesterday another story popped up in the news about a company owner in California committing fraud that cost workers and other businesses $700K.

I wish truly wish that stories like this were unusual, but they just aren’t. Cracking down on corporate corruption and greed would save a lot of money for insurance companies and other businesses, while saving even more American workers a lot of pain and suffering. Here is a link to an article with more details on the fraud committed by Doherty Painting & Construction:

Calif. Business Owner Fakes Wages: Charged with 57 Underground Economy Violations, $700,000 Loss

“The crimes we have charged against this employer are extremely serious,” says San Francisco District Attorney George Gascón. “This conduct not only victimizes workers who are desperately trying to make a living in a very tough economy, it also hurts the honest businesses that were unable to successfully compete for these projects which the defendant was able to underbid and win as a result of this scheme.”

One thought on “Business Owner Fakes Wages, Charged With $700,000 In Fraud

  1. You have a great blog on workers compensation. I practice in Alabama. My practice includes workers compensation, personal injury, and product liability litigation. I would love to share ideas. I noticed your post on Facebook and its impact on a claim. I have written a similar post on my injured worker blog. I also enjoyed your post on diabetes and its impact on injuries.

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