Kevin T. Brough, a Kaysville, Utah resident, was charged with 20 felonies as a consequence of an investigation by the Utah Insurance Department’s Fraud Division. Brough, a Farmers Insurance agent, pleaded guilty to three felony counts of: Unlawful Dealing of Property by a Fiduciary, (a 2nd Degree Felony), and two additional 3rd Degree Felony counts of Unlawful Dealing in Property by a Fiduciary. This crime carries a maximum prison sentence of one to 15 years, a fine and restitution of $1.4 million.
Brough’s convictions arose out of his alleged activities between Oct. 1998 and Dec. of 2001 while he was operating an employee leasing company identified as Solutions of Utah. The scheme came to light when several client company employees suffered serious injuries and discovered that they were not insured. Brough had reportedly pocketed $196,830 in workers’ comp premium withheld from employee salaries.
“This failure to pay the insurance premiums has left a number of business owners unprotected, at risk and their employees uninsured,” said Joe Christensen, director of the Fraud Division. It was also discovered that Brough failed to pay other state and federal deductions totaling over $1.2 million.
Christensen further stated, “This is happening quite often with employee leasing companies. The Fraud Division is currently investigating other similar allegations with Professional Employee Organizations (PEOs).
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