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Lake Steven roofing contractor sentenced to 60 days for Workers' Comp fraud

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February 14, 2013

Tumwater – A Lake Stevens man was sentenced to 60 days in jail converted to electronic home monitoring after a state investigation showed he failed to obtain workers’ compensation benefits for his employees.

David Erick Rau, owner of Davey’s Roofing, pled guilty in Snohomish County Superior Court to one count of Employer False Reporting, a Class C felony.

The Department of Labor & Industries was alerted to the fraud when Rau’s employee was seriously hurt on the job. He reported the injury, and L&I found no active workers’ compensation account for the firm.  Records show that L&I had audited Rau previously and educated him on the state’s reporting requirements.

A Class C felony carries a penalty of up to five years imprisonment and/or a $10,000 fine. The restitution of the premium debt for his unreported workers is $29,660, plus a 100 percent penalty of $29,660 for a total of $59,320.

L&I’s Fraud Prevention and Compliance Program assessed $24.6 million in unpaid employer premiums plus penalties in fiscal year 2012.  The program brings in nearly $9.30 for every dollar spent to fight fraud. More information is available at www.Lni.wa.gov/Main/Fraud.

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For media information: Dave Wasser, L&I Communications, 360-902-5288.

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Broadcast version:
A Lake Stevens man was sentenced to 60 days in jail converted to electronic home monitoring after a state investigation showed he failed to obtain workers' compensation benefits for his employees. David Erick Rau, owner of Davey's Roofing pled guilty in Snohomish County Superior Court to one count of Employer False Reporting, a Class C felony. After an employee was seriously injured, an investigation by the Washington State Department of Labor & Industries showed Rau failed to obtain workers' compensation benefits for his employees. He must also pay the $59,000 in back premiums and penalties for his unreported workers.

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