The owner of three Massachusetts staffing agencies found out what happens to those who try to screw with workers' compensation.
Dara Duong, 53, Lowell, Mass.,Â allegedly underreported the size of his staffing agencyâ€™s payroll and operations to avoid paying workersâ€™ compensation premium.
Duong owns three companies in Lowell: Middlesex Temporary Agency, Ankgor Staffing Inc. and General Labor Services, which provided factory workers and unskilled laborers.
According to various news reports, Duong failed to report the total number of employees, the number of clients they worked for and their payroll from 2006-08. He also allegedly misrepresented job classifications to avoid paying higher workersâ€™ compensation to two insurance companies.
This act saved him $110,000 in workersâ€™ comp premiums.
Or so he thought.
In October, the Attorney Generalâ€™s Office investigated Duong after the Massachusetts Insurance Fraud Bureau conducted its own investigation and referred it for prosecution. Duong was charged with three counts of workersâ€™ comp fraud and two counts of larceny over $250.
AG Martha Coakley said in a statement, â€śAll employers in Massachusetts have the responsibility of protecting the safety of their employees. We allege that Mr. Duong failed in his duty by knowingly failing to pay the proper amount of workersâ€™ compensation insurance.â€ť
Duong was indicted by a Middlesex grand jury on June 28. Heâ€™s scheduled for arraignment on July 14.