Treasury Department Notice Warns of Work Comp Fraud in Construction Industry

The Financial Crimes Enforcement Network of the U.S. Treasury Department on Tuesday issued a notice it said was intended to alert financial institutions to “a concerning increase in state and federal payroll tax evasion and workers’ compensation insurance fraud” in the residential and commercial construction industries. Payroll tax evasion and work comp insurance fraud schemes are effected with the use of shell companies and fraudulent documents, according to the notice. Insurers are defrauded when the shell companies take out minimal work comp policies and sell them to cont...