Tennessee Business Owner Indicted for Alleged Workers’ Comp Fraud

December 20, 2012

Tennessee authorities announced recently that a Memphis business owner had been indicted for alleged workers’ compensation fraud.

The state grand jury for Shelby County indicted Richard Nobles for four counts of workers’ compensation fraud over $60,000 (a class B felony). Nobles, 58, owns several subcontract labor companies including Xpress Services, Express Services, Labor Fast, Fast Track Systems, and CSI Services Inc.

Nobles’ companies provide workers for various construction jobs, primarily for dry wall work.

According to the indictment, Nobles allegedly underreported the annual amount of payroll for his various companies with intent to defraud four separate insurance companies of workers’ compensation premiums due them: Travelers Insurance Company, Berkley Regional Insurance, Work First Casualty Company, and Ullico Casualty.

The four counts of fraud allegedly took place from January 2006 through July 2010. The total amount of unpaid premiums is more than $1 million dollars.

“Mr. Nobles was obligated to pay workers’ compensation premiums on all of his employees. We contend he failed to do so by falsifying his payroll records. This is a serious offense under our state law,” said Shelby County District Attorney Bill Gibbons.

This case was investigated by the Tennessee Department of Labor and Workforce Development and Tennessee Bureau of Investigation.

“This sends a clear message to Tennessee employers that it’s time individuals who shortchange the state on unemployment insurance taxes and workers’ comp insurance should be brought to justice,” said Tennessee Department of Labor and Workforce Development Commissioner James G. Neeley. Nobles faces up to 12 years on each of the four counts.

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