Massachusetts Woman Sentenced for Workers’ Comp Evasion Scheme

A Dartmouth woman has been sentenced to 6 1/2 years in federal prison for paying more than $40 million in cash wages through the temporary employment agencies she ran with her husband in order to evade millions of dollars in taxes and workers compensation insurance premiums.

Aimee King McElroy was also sentenced on Tuesday to three years of probation and ordered to pay more than $9 million in restitution.

Federal prosecutors called it the largest under-the-table payroll scheme ever prosecuted in Massachusetts. The scheme resulted in a loss of about $10 million to the IRS and $7 million to insurance companies.

King McElroy and her husband, Daniel McElroy, were convicted in February. Daniel McElroy was sentenced previously to nine years in prison.