Workers Comp Fraud—New Jersey

Amount: Unknown

A roofer in New Jersey committed workers compensation insurance fraud by providing false information about his roofing staff. In order to pay a smaller amount of workers compensation premium, this fraudster reported that he had one roofer, one carpenter, and one salesman working for him, instead of the eight to ten roofers alone, that he had on payroll. He reported the wrong payroll numbers for over two years before he was caught and indicted. Reporting false payroll information ultimately hurts companies who are honest in their reporting by increasing their insurance costs over time. This workers compensation fraud is a third-degree crime and could result in up to five years in prison.