A San Francisco based painting contractor has been accused of being involved in fraud. The accused cheated the workers in her company. They were not paid wages that amount to $600,000. The alleged named Frances Ann Doherty has been charged with as many as 57 counts. These include theft of workers' wage and fraud in workers' compensation insurance premium.
Frances Ann Doherty Failed to Pay Prevailing Wage to Workers
Frances Ann Doherty ran a construction business called Doherty Painting & Construction. She had been unable to provide the prevailing wage in San Francisco to her workers for the projects she had undertaken.
Contractors who are offered projects in the state have to pay the prevailing wage to workers. They also have to provide the government with adequate verification details regarding the payment of wages. According to court details, Frances Ann Doherty has been given contracts of about 12 projects. Investigation reports suggest that the alleged provided her employees only a fraction of the wages that they were entitled to receive.
Misconduct Victimizes Honest Businesses
The fraudulent activity which Doherty was involved in is unfair not only to workers but also honest businesses that competed for the project. Workers, who are struggling to survive in the unstable economy, were cheated and so were other businesses that were not able to qualify for the project. The defendant successfully got the project as a result of her fraudulent schemes.
The employee payroll information provided by Doherty to insurance companies was fraudulent. It enabled her to provide workers with lower insurance premiums. The 51 year old Doherty has been granted bail for $750,000 by the federal court. The accused has not yet commented on the issue.