Colonial Automotive To Pay $1M For Exploiting MA Unemployment: AG

Westborough MA

19 January, 2021

3:38 PM

Description

Colonial Automotive Group agreed to a pay $1 million to settle claims that it took advantage of state unemployment benefits during the COVID-19 pandemic, Attorney General Maura Healey announced last week. Colonial has 16 car dealerships throughout the state and all showrooms were ordered closed throughout the state due to the COVID-19 pandemic. The company furloughed employees, encouraged them to apply for unemployment benefits and then requested that those employees continue to work without pay. "Colonial Automotive planned and carried out an illegal scheme to cheat our unemployment system and avoid paying its workers in order to maximize its profits during the COVID-19 crisis," AG Healey said. "This is a brazen attempt at exploiting workers and the state's unemployment system, and we will take action against those who defraud our state agencies and try to steal taxpayer dollars." The AG's Office alleges that in the months following the state ordered closure of the dealership's showrooms, the company sold approximately 366 cars in April and approximately 455 cars in May that were attributed to employees who were on furlough and collecting unemployment benefits at the time of the sales. Colonial's 16 car dealerships include: Colonial Cadillac of WoburnColonial Chevrolet of ActonColonial South Chevrolet DartmouthColonial West Chevrolet FitchburgColonial Chrysler Jeep Dodge Ram HudsonColonial South Jeep Dodge Ram DartmouthColonial Ford of PlymouthColonial Ford of MarlboroughColonial Honda of DartmouthNorth End Mazda of LunenburgColonial Nissan of MedfordCityside Subaru of BelmontNorth End Subaru of LunenburgColonial Volkswagen of WestboroughColonial Volkswagen of MedfordWellesley VolkswagenThe $1 million payment will go to the state's general fund. Colonial will have to enact policies and procedures to ensure that furloughed employees do not perform any functions related to their job or Colonial's business and, in any instance where furloughed employees do perform these duties, the company will compensate them in accordance with state employment regulations.