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PEO operator pleads guilty in workers’ comp scheme (Business Insurance)

March 01, 2017

The operator of Powell, Tenn.-based HR Comp LLC, a professional employer organization, pleaded guilty to conspiracy in a $5.9 million workers’ compensation scheme that involved collecting premiums for nonexistent comp policies. Business Insurance reports Andrea Rudd faces up to five years in prison and a fine of $250,000, according to the plea agreement; she also pleaded guilty to one count of tax evasion totaling $10.4 million, which carries the same potential sentence. Between January 2010 and October 2015, HR Comp accepted premium payments from client companies for workers’ comp coverage that was not actually provided and furnished fraudulent certificates of liability insurance to those clients, court records show.