The Attorney General says alleged scheme defraud insurer of thousands of dollars in premiums
A Suffolk Superior Grand Jury returned indictments against Elburke Lamson, of Chelsea, on Dec. 11th on charges that he failed to accurately report the total amount of payroll of his now defunct staffing company in Dorchester. The Attorney General says that the 50-year old’s actions permitted his business to avoid paying more than $45,000 dollars in insurance premiums.
“Premium avoidance puts lawful employers at a disadvantage and undermines the insurance system,” AG Coakley said. “The prosecution of these schemes prevents the increase in insurance premiums that often results from these crimes.”
Mr. Lamson operated as the manager of Legal Pro Temps, Inc. (‘Legal Pro”) in Dorchester. During the time period of November 2007 through November 2009, Lamson allegedly underreported the payroll of his company to his then insurer, the Atlantic Charter Insurance Company for Workers Compensation Insurance and Employers Liability Insurance, in order to evade high insurance premiums. Mr. Lamson’s actions in underreporting the amount of his payroll, allowed him to obtain a lower premium rate on his workers’ compensation policy.
According to the investigation into Mr. Lamson and Legal Pro, Lamson’s Legal Pro operated with a payroll totaling more than $2 million billed through its vendors. In stark contrast to this number, however, Atlantic Charter said that Lamson only reported his company’s payroll total at approximately $184,000. As a result of this premium avoidance scheme, contends the AG’s Office, Lamson underpaid his workers’ compensation insurer more than $45,000 in premium payments. Mr. Lamson’s actions also put Atlantic Charter Insurance unknowingly at risk to cover any undisclosed employees for injuries occurring or that might have occurred during the policy periods.
Mr. Lawson is scheduled to be arraigned on January 6, 2015.