Owner of Lowell Staffing Company Arraigned for Workers' Compensation Fraud
Allegedly Stole $110,000 As Part Of Intentional Scheme
Dara Duong, age 53, of Lowell, was arraigned today in Middlesex Superior Court today on charges of Workers' Compensation Fraud (3 counts), and Larceny over $250 (2 counts).
In October 2010, the AG's Office began an investigation after the Massachusetts Insurance Fraud Bureau (IFB) finished its own investigation and referred the matter for prosecution. Duong was the owner of three companies based in Lowell: Middlesex Temporary Agency (Middlesex), Ankgor Staffing, Inc. (Ankgor), and General Labor Services (General Labor). All three companies provided unskilled labor, such as factory workers, to several client companies.
Authorities allege that from 2006 through 2008, Duong intentionally underreported his companies' payroll, the total number of employees, and the number of clients his employees worked for. Duong also allegedly misrepresented job classifications as part of a scheme to avoid paying higher workers' compensation premiums to two insurance companies. Investigators discovered that based on Duong's false representations on his insurance policies, he avoided paying approximately $110,000 in workers' compensation premiums for a total of three policy periods.
A Middlesex Grand Jury returned indictments against Duong on June 28, 2011. He was arraigned in Middlesex Superior Court today where he pled not guilty and was released on personal recognizance. He is due back in court on August 10, 2011, for a pre-trial conference.
The case is being prosecuted by Assistant Attorney General Audrey Cosgrove, of AG Coakley's Insurance and Unemployment Fraud Division, and was originally investigated by the IFB.