Premium Fraud: Payroll Scandal

In June 2014, Investigation Solutions, Inc. received information that the claimant was receiving cash payments from the insured. After further investigation, it was discovered that the claimant was not documented to work in the United States and therefore the insured paid him cash for his work. The investigation department assisted with coordinating an audit which found that the insured had hidden nearly $100,000 in payroll each quarter.

Based on the new payroll figures, an additional $53,000 in premium was owed for 04/19/2013-04/19/2014 and $20,041 in premium was owed for 04/19/2012-04/19/2013. To date $53,000 has been received.