Switch back to WCC classic look

WorkCompCentral – Workers' Compensation Education, Courses, News and Information

Call or email us anytime
(805) 484-0333
Search Guide
Today is Tuesday, December 10, 2019 -

News Articles

Man Convicted of Payroll Fraud in 2008 Still Owes $9 Million in Restitution

  • State: Massachusetts
  • Topic: NORTH
  • -  219 views
  • - Average time spent on item: 7 minutes
  • - Popular with: Insurance
  • -  0 shares

A Massachusetts employment agency owner convicted of workers' compensation fraud, payroll fraud and tax fraud 11 years ago still owes as much as $9 million in restitution, according to state authorities and a local news report.

Daniel McElroy and his wife, Aimee McElroy, were convicted in 2008 of underreporting payroll, paying workers under the table and cheating workers' compensation carriers out of millions of dollars, a Massachusetts newspaper reported this week. The couple ran a staffing agency and supplied workers for New Bedford-area fish houses.

Prosecutors said at the time that the couple funneled money through two phony businesses and failed to report the true size of the companies' payroll, which was as much as $40 million. In 2008, it was considered one of the largest payroll-fraud cases in the country, the newspaper reported.

Daniel McElroy was sentenced to nine years in federal prison and his wife was sentenced to six years.

Daniel was released in 2016. He paid about $122,000 in restitution for the fraud but still owes almost $9 million, according to court documents.

No Comments

Log in to post a comment

Close


Do not post libelous remarks. You are solely responsible for the postings you input. By posting here you agree to hold harmless and indemnify WorkCompCentral for any damages and actions your post may cause.

Featured Video

Upcoming Events

Workers' Compensation Events

Social Media Links


WorkCompCentral Workers' Compensation
News and Education
4081 Mission Oaks Blvd
Camarillo, CA 93012
(805) 484-0333