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Tuesday, October 16, 2012

NJ Company Pleads Guilty to Theft of Insurance Premiums

NJ Attorney General Jeffrey S. Chiesa announced that a Burlington County company has pleaded guilty for under-reporting the number of its employees and wages to evade the full payment of workers’ compensation insurance premiums.

Techdan, LLC, which, at the time of the crime was located at 2092 Rt. 130 North in Florence, pleaded guilty yesterday to second-degree theft by deception before Superior Court Judge James W. Palmer, Jr. in Burlington County. The charge was contained in a July 3 state grand jury indictment.

Judge Palmer scheduled sentencing for November 16. Under the plea agreement, Techdan, LLC has agreed to pay $75,000 in restitution.

In pleading guilty, Techdan, LLC admitted that between March 12, 2004 and July 5, 2007, the company gave the false impression to Liberty Mutual Insurance Company that it was entitled to lower workers’ compensation premiums. Techdan, LLC admitted that it under-reporting the number of its employees and/or the misclassification of its employees’ occupational classes and/or under reporting the total employee payroll amounts to evade paying the full payment of workers’ compensation.

Deputy Attorney General Cheryl A. Maccaroni and Detective Natalie Brotherston and Civil Investigator Wilbert Sowney were assigned to the case. Acting Insurance Fraud Prosecutor Ronald Chillemi thanked Liberty Mutual Insurance Company for its assistance in the investigation.