A new trend is emerging of roofing contractors becoming victims of fraud by employees taking advantage of lapses in internal controls while being deceitful on both professional and personal levels.
The bookkeeper of a Pennsylvania roofing company admitted to making unauthorized charges that were spent on items like sports tickets and plastic surgery.
The New York company and its owner pleaded guilty to petit larceny and fifth-degree insurance fraud as well as second-degree grand larceny and second-degree insurance fraud.
The contractor willfully failed to collect and pay over to the IRS required federal payroll taxes in the total amount of $185,681.90 from 2017 to 2020.
Fraud is out of control in the roofing industry, says Trent Cotney, partner at Adams and Reese, but there are steps contractors can take to prevent it.