The former executives of a company that provided workers’ compensation insurance and other human resources consulting services to companies in 32 states have been charged with fraud by the U.S. Securities and Exchange Commission.
They’re charged with defrauding shareholders.
The execs are charged with falsifying financial statements for Certified Services Inc., a publicly traded company in Fort Lauderdale, Fla. The company inflated its assets with 16 bogus letters of credit, supposedly worth $47 million. The company also failed to report workers’ compensation claims liabilities, which at their peak were $65 million. Both these actions served to make the company appear more financially stable and solvent that it was.
Certified Services Inc. provided workers comp, payroll and tax withholding services to 1,900 small and midsize companies with a combined 53,000 workers.
The company went bankrupt in 2006.