Company was able to avoid paying more than $35,000 dollars in worker’s comp. premiums
Allen Young, 54, of Marlborough was indicted on June 18th for his avoidance in paying thousands of dollars in workers compensation insurance premiums. He was indicted by a Suffolk Grand Jury on six counts of Workers’ Compensation Fraud and six counts of Larceny Over $250. His arraignment in Suffolk Superior Court will take place on July 21st.
Mr. Young is the sole owner and officer of Atlantic Bay Contracting, Inc. an asbestos abatement company based in Allston.
We allege that this defendant jeopardized the safety of his employees by intentionally making false representations about his company’s work to avoid paying proper premiums,” AG Healey said. “This kind of fraud also harms law-abiding Massachusetts business owners who pay appropriate premiums to cover the risks of their business and protect their employees.”
According to authorities, between 2007 and 2014, Mr. Young falsely reported that his company focus was limited to asbestos removal from pipes and boilers only. Based upon this admission, Mr. Young received lower premium rates on his company’s workers compensation insurance policies. In reality, however, the majority of asbestos removal conducted by Mr. Young’s company was from a variety of other additional materials.
As a result of this alleged scheme, said authorities, Mr. Young put his insurance companies and his workers at risk to cover injuries that could have occurred because of the more dangerous asbestos work. He is thought to have avoided more than $35,000 in insurance premiums via this scheme.
This case was referred to the Attorney General’s Office by the Insurance Fraud Bureau of Massachusetts (IFB) after an investigation by the IFB into allegations that the Allston company was actively engaged in insurance fraud.
This joint effort illustrates the commitment of both the Insurance Fraud Bureau and AG Healey’s office in fighting this type of insurance fraud,” said IFB Chief of Investigations Anthony DiPaolo. “Workers’ compensation premium evasion places a financial drain on the system.”