Lowell-based recruitment agency owner charged with workers’ compensation fraud
LOWELL – Owner of Lowell-based temp agency faces charges including workers’ compensation fraud over allegations he failed to provide true mass size salary to the agency’s insurance provider, according to the authorities.
SPL Temp Agency owner Sophea Choeng, 35, of Lowell, has been indicted by a Middlesex County grand jury on two counts of workers’ compensation fraud and theft over $ 250, according to a press release from Attorney General Maura Healey’s office. published Wednesday.
The office of the GA alleges in the press release that between 2013 and 2015, SPL Temp Agency “largely underestimated its payroll” during audits of insurance companies. According to the AG’s office, this was done to reduce the insurance premiums that it would be charged for workers’ compensation insurance.
The AG’s office says that during the 2013-2014 policy period, the SPL Temp Agency reported a payroll of $ 850,221 when investigators allege the payroll exceeded $ 5.3 million. During the 2014-2015 policy period, the agency reported a payroll of $ 551,591, while investigators say the agency had a payroll of more than $ 2 million, according to the office of the AG.
Due to the alleged underreporting of payroll, the SPL Temp Agency has escaped at least $ 141,194 in workers’ compensation premiums, according to the AG’s office.
An attempt by The Sun to reach the SPL temp agency by phone late Wednesday afternoon failed. The agency is headquartered on Branch Street in Lowell.
This case is being pursued by Deputy Attorney General Joshua Pakstis with the assistance of Loreny Bernabe, both of AG Healey’s Insurance and Unemployment Fraud Unit, and investigators from the Insurance Fraud Office. .
Choeng is due to be brought to justice in Middlesex Superior Court on July 22.
Follow Aaron Curtis on Twitter @aselahcurtis