In national news:

Property/Casualty 360 published a look at how construction companies sometimes illegally hide workers in shell companies in order to avoid paying for workers’ comp coverage. The authors trace the trend to 2000s-era Florida, explaining:

“Shell schemes in construction have risen to new levels of scope and sophistication in the last 10 years. Networks of dishonest specialty contractors, labor brokers, facilitators, paid straw shell owners and check-cashing stores can avoid far more workers’ comp premiums and taxes than the traditional premium scams. Shell schemes also have spread to other states, especially states with large construction activity.”

Interested in employer fraud issues? We covered Louisiana’s new efforts to prevent it and discussed it at the last Louisiana Comp Blog “Comp in Focus” industry luncheon. Check out pictures from the event here.

Read more about the “shell game” here.

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