§ 28-36-16 - Fraudulent conveyances by uninsured employer.
SECTION 28-36-16
§ 28-36-16 Fraudulent conveyances byuninsured employer. – (a) Any uninsured employer, who knowingly transfers, sells, encumbers, assigns,or in any manner disposes of, conceals, secretes, or destroys any propertybelonging to that employer, after one of his employees has been injured, withinthe purview of chapters 29 – 38 of this title, and with intent to avoidthe payment of compensation under those chapters to that employee or his or herdependents, shall be guilty of a misdemeanor and, upon conviction, shall bepunished by a fine of not less than one hundred dollars ($100) and not morethan five hundred dollars ($500) for each day of willful noncompliance with therequirements of this title. Each day shall constitute a separate and distinctoffense for calculation of the fine. Provided, that in no case shall the fineexceed an amount determined to be three (3) times the premium required asdetermined by the payroll audit required, for the time period in which theemployer was required to secure the payment of compensation, or by imprisonmentfor not more than one year, or by both fine and imprisonment, and in any casewhere that employer is a corporation, the president, secretary, and treasurershall be also severally liable to the penalty of imprisonment as well asjointly and severally liable with the corporation for the fine. The directorhas discretion to assess an administrative penalty and/or to bring a civilaction in any court of competent jurisdiction, or to refer the matter to theattorney general for prosecution of criminal charges.
(b) As soon as practicable after a complaint under thissection is filed, the director shall examine the complaint to determine whethercause exists for further inquiry. Should the director find cause, the directorshall then give the parties to the complaint not less than ten (10) days'notice by mail of the time and place of the hearing. After the hearing, partiesto the complaint shall be given notice by mail by the director of his or herdetermination of the controversy, including the amount of the payment thedirector recommends as a bond or penalty. Any party shall have the right toappeal from any determination or order made under this chapter. Any appealauthorized under this chapter shall be made to the workers' compensation courtin the first instance, and from the workers' compensation court to the supremecourt in accordance with § 28-35-30. The director, in his or herdiscretion, may bring a civil action in any court of competent jurisdiction.All civil actions for any violations of this chapter or of any of the rules orregulations promulgated by the director, or for the collection of payments inaccordance with § 28-37-13 or penalties hereunder, shall be prosecuted byany qualified member of the Rhode Island bar whom the director may designate,in the name of the director, and the director shall be exempt from givingsurety for costs in any proceedings.
(c) The director shall collect all payments under thischapter under any rules and regulations that may be set forth by the director.All fines collected pursuant to this section shall be deposited to a restrictedreceipt account to be administered by the director of the department of laborand training in his or her sole discretion to carry out the provisions ofchapters 29 – 38 of this title.