Massachusetts Man Convicted Of Mail Fraud in Comp Case

Oct. 14, 2002
A Peabody, Mass., resident was convicted in federal court of mail fraud in connection with a scheme to fraudulently reduce the workers' compensation insurance premiums he paid by providing false information to insurance companies.

Arthur L. Pimental was convicted by a jury sitting before U.S. District Judge Nancy Gertner of two counts of mail fraud. The jury acquitted Pimental's wife, who was also on trial.

Evidence presented during the five-day trial proved that Pimental operated a construction business known at various times as Pimental Steel Erectors and A.P.S. Products Inc. According to prosecutors, Pimental engaged in a scheme to defraud the insurance companies that were providing workers' compensation insurance to his business by falsely representing that he was engaged in concrete construction, when in fact he was primarily engaged in the erection of structural steel. The erection of structural steel is considered a much riskier type of construction work, and therefore subject to higher workers' compensation insurance premiums.

The evidence also established that PIMENTAL under-reported the payroll he was paying his employees, which was another factor in determining workers' compensation insurance premiums. Pimental avoided paying at least $300,000 in workers' compensation insurance premiums to three insurance companies over a period of five years.

Judge Gertner scheduled sentencing for Jan. 6, 2003. Pimental faces five years in prison, to be followed by three years of supervised release, a $250,000 fine, and restitution to the insurance companies on each of the two counts.

The case was investigated by the Federal Bureau of Investigation and the Insurance Fraud Bureau of Massachusetts. It is prosecuted by Assistant U.S. Attorney Mark J. Balthazard from the Economic Crimes Unit.

About the Author

Sandy Smith

Sandy Smith is the former content director of EHS Today, and is currently the EHSQ content & community lead at Intelex Technologies Inc. She has written about occupational safety and health and environmental issues since 1990.

Sponsored Recommendations

Free Webinar: ISO 45001 – A Commitment to Occupational Health, Safety & Personal Wellness

May 30, 2024
Secure a safer and more productive workplace using proven Management Systems ISO 45001 and ISO 45003.

ISO 45003 – Psychological Health and Safety at Work

May 30, 2024
ISO 45003 offers a comprehensive framework to expand your existing occupational health and safety program, helping you mitigate psychosocial risks and promote overall employee...

DH Pace, national door and dock provider, reduces TRIR and claims with EHS solution

May 29, 2024
Find out how DH Pace moved from paper/email/excel to an EHS platform, changing their culture. They reduced TRIR from 4.8 to 1.46 and improved their ability to bid on and win contracts...

Case Study: Improve TRIR from 4+ to 1 with EHS Solution and Safety Training

May 29, 2024
Safety training and EHS solutions improve TRIR for Complete Mechanical Services, leading to increased business. Moving incidents, training, and other EHS procedures into the digital...

Voice your opinion!

To join the conversation, and become an exclusive member of EHS Today, create an account today!