How a Lie Can Lead to a Felony

From the Desk Of:

Scott M. Tilley, Esq.

President, Managing Attorney

Certified Specialist Workers' Compensation Law

The State Bar of California Board of Legal Specialization

A Contractor Told an Injured Worker to Lie About His Job. He's Now Facing Felony Fraud Charges.

A San Francisco construction company owner allegedly coached an injured employee to deny he even worked there, then denied it himself when the claim came in. He's now charged with multiple felonies, and the case is a clear illustration of exactly what not to do when a claim looks expensive.

The San Francisco District Attorney's Office announced on August 7, 2026, that Declan McKevitt, 47, and Grace McKevitt, 54, owners of An Dun Construction, were arraigned on felony charges of workers' compensation premium fraud and payroll tax fraud.

The injury came first. The cover-up made it a felony case.

An employee severely injured his hand on a table saw, losing a finger. According to the DA's office, McKevitt told the injured worker to deny the injury was work-related while he sought medical care, then separately told investigators the man didn't work for An Dun Construction at all and had no business being on the jobsite. That's not a coverage dispute; That's an employer trying to erase an employment relationship after someone gets hurt on the job. The fraud didn't stop at the claim. Investigators found McKevitt had been underreporting payroll to both the workers' comp insurer and the Employment Development Department for some time, avoiding insurance premiums, income tax, and payroll tax along the way. Mr. and Ms. McKevitt are each charged under Insurance Code 11880(a) for insurance fraud, plus three separate Unemployment Insurance Code violations for failing to make contributions, evading tax, and failing to pay over withheld money. Both are due back in court October 15, 2026.

Why this case is worth watching

Most premium fraud gets caught in an audit, quietly, with a bill for back premium and maybe a penalty. This case escalated because the fraud collided with an actual injury and the employer chose denial over disclosure at exactly the wrong moment. Once an employer tells an injured worker to lie or tells an insurer or investigator that an employee doesn't exist, the exposure stops being a premium calculation problem and becomes a criminal one. The underlying payroll misreporting had probably been going on for a while before anyone noticed. It was the injury, and the employer's response to it, that turned it into an arraignment.

What this means for claims handling

If you're an adjuster and an employer suddenly disputes that an injured claimant was ever their employee, especially after an obviously serious injury, treat that denial with real skepticism. Pull payroll records independently. Cross-check EDD wage data if you have access to it. An employer who denies an employment relationship reflexively, without documentation, is sometimes protecting a legitimate dispute, but sometimes covering up exactly what happened here.

What to do about it now

Remind your insureds, in plain language, that denying an employee's status after an injury is not a defense strategy; it's a separate crime. If you're seeing payroll figures that don't match reported headcount or activity level, flag it for an audit before a claim forces the issue. And when a claim comes in with a denied employment relationship and no paper trail to back it up, escalate for a fraud referral rather than treating it as a routine compensability dispute.

Law Offices of Parker & Irwin

This post is for general information only and is not legal advice.