Monday, October 23, 2006

Chatsworth Charged with Workers Compensation Fraud

giExecutives of Cover-All Inc., a multistate flooring and carpet installation company, have been charged with a workers’ compensation premium fraud investigation of nearly $11 million.

Under the investigation, the company underreported payroll by nearly $32 million to State Fund for more than four years, and this resulted in a premium loss of $10.98 million.

50 years' old Gad Leshem, president and CEO of Cover-All Inc, is charged with four counts of premium fraud and one count of conspiracy.

A felony complaint was also filed against 54 years' old Zeev Golan, vice president of the company, and 52 years' old Irit Golan, executive secretary and payroll supervisor, charging both with four counts each of premium fraud and one count of conspiracy.

Cover-All is flooring subcontractor with 1,500 employees in 54 locations across the country.

Arraignment is scheduled for Nov. 13.

Workers Compensation Poster is a mandatory labor law poster in many states.

No comments: