For Immediate Release - June 18, 2015

Allston Business Owner Indicted for Workers' Compensation Fraud, Larceny

Alleged Scheme Resulted in More Than $35,000 in Fraud

BOSTON – A Marlborough man who owns an Allston asbestos abatement company has been indicted in connection with allegedly failing to accurately report the nature of his company’s work to avoid paying thousands of dollars in insurance premiums, Attorney General Maura Healey announced today.

Allen Young, age 54, of Marlborough, was indicted today by a Suffolk Grand Jury on charges of Workers’ Compensation Fraud (6 counts) and Larceny Over $250 (6 counts). He will be arraigned in Suffolk Superior Court on July 21.

“We allege that this defendant jeopardized the safety of his employees by intentionally making false representations about his company’s work to avoid paying proper premiums,” AG Healey said. “This kind of fraud also harms law-abiding Massachusetts business owners who pay appropriate premiums to cover the risks of their business and protect their employees.”

The Insurance Fraud Bureau of Massachusetts (IFB) referred this case to the Attorney General’s Office after an investigation into allegations that the company was committing insurance fraud.

“This joint effort illustrates the commitment of both the Insurance Fraud Bureau and AG Healey’s office in fighting this type of insurance fraud,” said IFB Chief of Investigations Anthony DiPaolo. “Workers’ compensation premium evasion places a financial drain on the system.”

The Workers’ Compensation Ratings and Inspection Bureau (WCRIB) establishes different categories of policy cost depending on the risk of injury associated with different types of jobs, and insurers apply those categories to a company’s payroll to calculate workers’ compensation insurance premiums.

According to authorities, Young is the sole owner and officer of Atlantic Bay Contracting, Inc., an asbestos abatement company located in Allston.

Authorities allege that between 2007 and 2014, Young falsely reported that the company’s operations were limited to asbestos removal from pipes and boilers only, when in reality, the majority of the work was on other or additional materials.

Based on the reporting, Young was granted lower premium rates on his company policies. As a result of this alleged scheme, Young put his insurance companies and his workers at risk to cover injuries that could have occurred because of the more dangerous asbestos work. Through this scheme, he allegedly avoided paying more than $35,000 in insurance premiums.   

AG Healey’s Insurance and Unemployment Fraud Division works to protect consumers and the integrity of the insurance system by investigating and prosecuting those who commit fraud against all types of insurers, including the Commonwealth’s unemployment insurance and workers’ compensation systems. 

These charges are allegations and the defendant is presumed innocent until proven guilty.

Assistant Attorney General Gabriel Thornton of AG Healey’s Insurance and Unemployment Fraud Division is prosecuting this case with the assistance of investigator Philip Mantyla of the Attorney General’s Office and the Insurance Fraud Bureau.