Mass Business Arraigned on Workers Compensation Insurance Fraud

August 27, 2012 Posted by admin

A Woburn, Mass business owner was recently arraigned on 4 counts of?Insurance Fraud and 3 counts or Larceny Over $250.

Edward App, who owns App Tree Inc of Woburn, Mass, was insured by AIM Mutual Insurance from 2005-2009 and reported that he was the only employee and was charged a minimum premium workers compensation insurance policy for those years.

Authorities allege, he did in fact have employees and did not report their wages to avoid paying $42,115 in insurance premiums over the 5 years. The premium avoidance scheme came to light when an employee was injured and AIM ended up paying approximately $700,000 in medical bills and lost wages to the injured worker.

Here is a copy of the Mass Attorney General?s press release:

http://www.mass.gov/ago/news-and-updates/press-releases/2012/2012-07-25-edward-app-arraignment.html

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This information is brought to you by James S Smith, of Smith Buckley & Hunt Insurance, your Mass Workers Compensation Insurance resource.

Jim can be reached at 508-586-5432 or Jim@sbhins.com

Source: http://www.massworkcomp.com/?p=189&utm_source=rss&utm_medium=rss&utm_campaign=mass-business-arraigned-on-workers-compensation-insurance-fraud

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