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Log In / Register | Jul 23, 2018

Woman Sentenced to 8 Years for Defrauding Small Businesses of $15.8M

Andrea Rudd, a Powell, Tennessee, owner of a company that provided human resource services to small businesses, was sentenced to eight years in prison for stealing $15.8 million that was earmarked to pay payroll taxes or workers compensation premiums for her clients. She was also ordered to pay over $15 million in restitution.

Rudd operated under HR Comp as well as a slew of subsidiaries, all professional employer organization (PEO) businesses, according to the release. PEOs provide clients with various human resource services.

…Assistant U.S. Attorney Frank Dale wrote in court records that Rudd, as owner of a payroll services firm, HR Comp, LLC, took money from small businesses to cover payroll taxes and workers’ compensation insurance that she instead pocketed. — Travis Dorman, USA Today

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