Defunct N.H. Drywall Contractor Plastered with Charges for Scam

A defunct New Hampshire drywall contractor and its corporate officer have been indicted on charges of larceny by false pretenses and workers’ compensation premium evasion, Massachusetts Attorney General Tom Reilly announced.

Michael Jenkins, 42, and TMJ Construction Co., Inc., both of Merrimack, N.H., were indicted by a Suffolk County grand jury. They are expected to be arraigned Nov. 9 in Suffolk Superior Court.

The indictments allege that during February and March 2004, Jenkins submitted materially false statements when applying for a Massachusetts workers’ comp insurance policy issued by Granite State Insurance, a subsidiary of American International Group (AIG).

Jenkins allegedly falsely under-reported the company’s payroll expenses and denied any prior insurance history in his submissions to the Massachusetts Workers Compensation Rating and Inspection Bureau (WCRIB), in order to artificially reduce his assessed premium by nearly $88,000.

The WCRIB places workers’ comp insurance coverage for employers who are unable to obtain coverage from the voluntary market, by assigning a private insurer to issue a Massachusetts policy, collect the premium, and pay any claims. Payroll expenses and insurance history are relevant factors in setting the premiums charged to employers.

AIG, the parent company of the insurer assigned to issue the policy, discovered the false statements several months after the policy’s inception. The matter was brought to the Attorney General’s attention by World Investigative Resources, AIG’s Special Investigative Unit.