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How construction cons steal workers’ comp premiums: It's a shell game

Shell schemes in construction to avoid workers' comp premiums and taxes have risen to new levels of scope and sophistication in the last 10 years.

By David Borum, CFE, CFIC, CIFI, Geoffrey Branch, CFE | Updated on April 25, 2017

A troubling trend of construction firms illegally hiding workers in shell companies to avoid paying state-required workers’ compensation coverage began emerging in Florida in the early 2000s.

Historically, dishonest contractors lowballed large amounts of their payroll, undetected. The goal was to under-report employees and salaries, and lie that employees worked safer jobs than they really did.

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