A Roger’s based tree company faces charges for an insurance fraud scheme that was discovered after one of their employees nearly drowned in an accident.
The accident happened on March 21, 2018. Two employees were working when the lift they were using lost control, slid downhill and overturned in a partially frozen pond.
One of the employees suffered a number of injuries as well as anxiety and Post Traumatic Stress.
During an investigation, the Minnesota Commerce Fraud Bureau learned that the tree company was under-reporting payroll costs to the company that provided their Workmen’s Compensation insurance. As a result, the tree company was charged less for Workmen’s Comp. insurance.
The day after the accident the tree company sent their insurance company the first report regarding the employee’s injury and intentionally lied about the injured man’s wages, hours worked and status.
The insurance company then use that information to calculate the amount the injured man received which was half of what he should’ve received.
The tree company was charged with a summons and their first court appearance was set for January 3rd.