Posted On: July 30, 2009 by Steven J. Malman

Workers’ Compensation Fraud: Roofing Company Owner Pleads Guilty

The owner of a roofing company has pleaded guilty to workers’ compensation fraud charges. Robert McDonald owns Gulfstream Roofing. He has been found guilty of using bogus construction companies so he wouldn’t have to pay $400,000 in premiums.

According to investigators, Gulfstream Roofing transferred nearly $3 million in payroll using “fake construction companies” under the pretense that it was paid to insure subcontractors. The company reportedly did this between 2002 and 2006.

McDonald has been ordered to pay Bridgefield Insurance Co. $400,000 in restitution, over $6,000 in investigative expenses, and nearly $500 in court costs. He also has to serve 300 hours of community service.

Alex Sink, Florida’s chief financial officer, noted that actions like the one attributed to McDonald and others place workers at risk and leave them without protection.

Workers’ Compensation Fraud
Workers’ compensation fraud may involve someone withholding information or making bogus statements to receive workers’ compensation benefits or a party preventing someone else from receiving the Illinois workers’ compensation benefits that they are owed.

Considering that workers’ compensation exists to provide injured workers and their families with benefits in the event of a work accident, workers’ compensation fraud can be a serious matter.

Under Illinois state law, injured employees receive 2/3rds of their regular wages, tax-free, during the time they cannot work because they are busy recovering. The employers’ insurer pays for medical bills.

In the event of delays or disputes, our Chicago workers’ compensation law firm knows what to do to make sure that your payments come to you on time and in the full amounts that you are owed.

Roofer pleads guilty to workers’ comp fraud, Bizjournals, July 30, 2009


Related Web Resources:
Illinois Workers' Compensation Commission

Contact our Chicago workers' compensation lawyers today.

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