Should I expose a fraud ?

Discussion in 'Lawn Mowing' started by A1 Lawn@Landscapes, Jul 5, 2003.

  1. A1 Lawn@Landscapes

    A1 Lawn@Landscapes LawnSite Member
    Posts: 220

    I found out recently that one of my biggest competitors is using false advertising in order to get jobs. His advertisement clearly states " Fully Insured ". He is not. He has employees without a workers compensation policy. He is paying them under the table. I have lost some rather large bids to him with the customer beleiving that we were both equally well insured. I got the information regarding his insurance, or lack thereof, straight from an employee of the state board of industrial accidents. Should I bag him ? Should I look at legal action ? We are talkin about $ 35-45,000 in work that I am aware of.
     
  2. Bunton Guy

    Bunton Guy LawnSite Bronze Member
    Posts: 1,759

    Within time someon will expose him. If you have the time go get him well then go for it...as long as you dont mind the other LCO's calling you a tattle tail behind your back.
     
  3. John Gamba

    John Gamba LawnSite Fanatic
    from ct
    Posts: 10,812

    He should Not Mess With someone with Insurance, Turn Him In Now!!!!
    John
     
  4. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    I am kind of iffy on turning someone in that doesn't have insurance...it's almost like turning someone in that doesn't claim everything on their taxes. I personally would just let it go because sooner or later, either by injury or lawsuit the guy will get caught.
     
  5. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    Without a doubt you should turn him in. If he doesn't have workers comp. waiting till someone gets hurt is not the answer. Suppose a worker gets hurt,and is maimed permantly then he will be screwed for good. The guy is a liar, and doesn't care about his employees....TURN HIM IN!!!
     
  6. nelbuts

    nelbuts LawnSite Bronze Member
    from SW, FL
    Posts: 1,053

    Personally, I would not turn him in. I think that respect amoung your peers is more valuable in the long run. I know many LMO's in my area that are spraying Round Up without a license but I do not turn them in. Instead when I submit a bid I give them a copy of mine and suggest that they should request all other companies who bid do the same. You should do that and explain how if they employ a company without the proper insurance then they are in fact the employer and are responsible for all individuals who work on their property. They will get the message.

    Now the ones you lost how about this. Send them a postcard. Ask, Is your does your lawn maintenance company have ALL the proper insurance?" "ARE YOU SURE?" "If not then give us a call at 555-2222."

    That should fix it for you.

    Just my $.02
     
  7. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    my feeling as well
     
  8. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    Hey guys You all are probably bigger companys,and more successful than I am. That being said, what kind of respect is it that comes from a guy that lies to take biz. from you? I realize that there are other lco's. Yet I'll not worry what some other lco's. think about the way I do my biz. I believe integrity is a first to be in biz. This is part of the reason that this industry is not regarded as legititmate by a lot of people. Just my thoughts :)
     
  9. TLS

    TLS LawnSite Fanatic
    Posts: 7,937

    "Fully Insured" and not having workmans Comp. are TWO entirely different things.

    If he is covered by a Commercial Contractors Liability Insurance Policy, then HE *IS* "technically" FULLY INSURED. Thats all I have and ALL "I" need.

    Now you mention that he has employees.....Does he? Or are they SUB-Contractors? You don't know how his company is structured on paper, just heresay from ex-employees.


    He probably IS being sneaky and naughty, but bottom line.....If a kid gets hit by a stone from his mower, he will MOST LIKELY be covered by normal Liability coverage. Workmans compensation is to benefit the worker, not the homeowner.

    At least thats how I always read it.
     
  10. bob

    bob LawnSite Platinum Member
    from DE
    Posts: 4,254

    I probably wouldn't turn him in. Situations like this can sometimes turn around and bite you in the ace. He'll get whats coming to him sooner or later.
     

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