Marlborough Business Owner Indicted on Workers' Comp Fraud, Larceny

A Marlborough man who owns an Allston asbestos abatement company has been indicted in connection with allegedly failing to accurately report the nature of his company’s work to avoid paying thousands of dollars in insurance premiums, Attorney General Maura Healey announced on Thursday.

Allen Young, 54, was indicted by a Suffolk Grand Jury on charges of six counts of workers’ compensation fraud and six counts of larceny over $250.

He will be arraigned on July 21.

“We allege that this defendant jeopardized the safety of his employees by intentionally making false representations about his company’s work to avoid paying proper premiums,” AG Healey said in a statement. “This kind of fraud also harms law-abiding Massachusetts business owners who pay appropriate premiums to cover the risks of their business and protect their employees.”

The Insurance Fraud Bureau of Massachusetts (IFB) referred this case to the Attorney General’s Office after an investigation into allegations that the company was committing insurance fraud.

“This joint effort illustrates the commitment of both the Insurance Fraud Bureau and AG Healey’s office in fighting this type of insurance fraud,” said IFB Chief of Investigations Anthony DiPaolo in an annoucenment. “Workers’ compensation premium evasion places a financial drain on the system.”

Young is the sole owner and officer of Atlantic Bay Contracting, Inc., an asbestos abatement company located in Allston, said authorities.

It is alleged that Young, between 2007 and 2014, falsely reported that the company’s operations were limited to asbestos removal from pipes and boilers only. The majority of the work was on other or additional materials.

Based on the reporting, Young was granted lower premium rates on his company policies, said AG Healy. As a result of this alleged scheme, Young put his insurance companies and his workers at risk to cover injuries that could have occurred because of the more dangerous asbestos work. He allegedly avoided paying more than $35,000 in insurance premiums.