NJ Roofing Company Admits to Workers’ Comp Fraud
Charles Kelsey Pegler, Sr., former president of Roof Diagnostics, Inc., was indicted by a grand jury for third degree insurance fraud in December 2013. He pleaded guilty on April 17, 2014, and will be sentenced in June.
Pegler admitted to falsifying information provided to his company’s workers’ compensation insurance provider in an effort to reduce his premium. According to authorities, he was able to avoid paying hundreds of thousands of dollars in this insurance fraud scheme.
Under the plea agreement, prosecutors will recommend that he spend 180 days in county jail, in addition to being sentenced to five years probation. The agreement will also require him to pay $134,087 in restitution to Atain Insurance Companies.
The insurance fraud ran from June 2003 to October 2009. Pegler admitted that he created and sent false documents to New Jersey Casualty Insurance Company (a subsidiary of New Jersey Manufacturers Insurance Company, to which Pegler was also forced to pay restitution), stating that his company was not a roofing company and did not employ any roofers or install or maintain any roofs.
According to the prosecutor for the New Jersey Office for Insurance Fraud, Roof Diagnostics, Inc. paid $265,044 less than it should have for insurance coverage.
In addition, Pegler said that he produced false documents for Atain Insurance (formerly USF Insurance Company), stating that all of their roofing work was done by subcontractors instead of regular employees.
Workers’ compensation insurance fraud is a crime which has multiple victims. First, by lying to avoid insurance premiums, Pegler put many of his 400-plus employees at risk of being unprotected in the event of an injury. Second, insurance fraud causes everyone’s premiums to increase in an effort to offset fraudulent activity. When a person commits insurance fraud, it’s usually not the insurance companies who have to pay; it’s the people who can’t afford increases in their monthly and annual bills who feel it the most.
At the Law Offices of Craig A. Altman, our attorneys are highly experienced and knowledgeable about Pennsylvania and New Jersey workers’ compensation law. If you or a loved one has sustained a legitimate injury on the job, we can make sure you are getting the full extent of workers’ comp you are entitled to receive. Contact us today for a free consultation.