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You are here: Home / News / Massachusetts Auto Dealer Pays $1 Million for Exploiting State Unemployment System During Pandemic

Massachusetts Auto Dealer Pays $1 Million for Exploiting State Unemployment System During Pandemic

January 20, 2021 By CollisionWeek Editor

According to Commonwealth Attorney General, company encouraged furloughed employees who were collecting state unemployment benefits to work without pay.

Massachusetts car dealer Colonial Automotive Group, Inc. has agreed to pay $1 million in penalties to settle claims that it took advantage of state unemployment benefits during the COVID-19 pandemic, Attorney General Maura Healey announced. Following the state’s mandated closure of car dealership showrooms during the public health crisis, the company encouraged furloughed employees to apply for benefits through the state Department of Unemployment Assistance (DUA), and then requested that those employees continue to work without pay.

Massachusetts AG official seal“Colonial Automotive planned and

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Filed Under: News Tagged With: Attorney General, Coalition Against Insurance Fraud, Fraud, Lawsuit, Massachusetts, Unemployment Insurance

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