Kentucky Mine Owner Pleads Guilty to Workers Comp Fraud

April 3, 2007

Harold Simpson, owner and operator of Simpson Mining Co. in Perry County, Ky., pleaded guilty to mail fraud in U.S. District Court after special investigators with Kentucky Employers’ Mutual Insurance discovered Simpson was misrepresenting the size of his company in order to reduce the amount of the workers’ compensation premium his business would have to pay, the insurer reported.

A U.S. Postal Inspection Service investigation confirmed Simpson mailed fraudulent payroll records to KEMI and other insurance providers.

“Employers who under report payroll to their workers’ compensation insurance company are engaged in an illegal practice that gives them an unfair advantage over others in their respective industry,” stated Roger Fries, president and CEO of KEMI. “KEMI is very serious about ensuring that payrolls are accurately reported and that policyholders who operate with integrity are protected from businesses that use these types of illegal tactics to gain an edge in the marketplace.”


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