§ 28-36-16. Fraudulent conveyances by uninsured employer.
(a) Any uninsured employer, who knowingly transfers, sells, encumbers, assigns, or in
any manner disposes of, conceals, secretes, or destroys any property belonging to
that employer, after one of the employer's employees has been injured, within the
purview of chapters 29 — 38 of this title, and with intent to avoid the payment of
compensation under those chapters to that employee or his or her dependents, shall
be guilty of a misdemeanor and, upon conviction, shall be punished by a fine of not
less than one hundred dollars ($100) and not more than five hundred dollars ($500)
for each day of willful noncompliance with the requirements of this title. Each day
shall constitute a separate and distinct offense for calculation of the fine. Provided,
that in no case shall the fine exceed an amount determined to be three (3) times the
premium required as determined by the payroll audit required, for the time period
in which the employer was required to secure the payment of compensation, or by imprisonment
for not more than one year, or by both fine and imprisonment, and in any case where
that employer is a corporation, the president, secretary, and treasurer shall be also
severally liable to the penalty of imprisonment as well as jointly and severally liable
with the corporation for the fine. The director has discretion to assess an administrative
penalty and/or to bring a civil action in any court of competent jurisdiction, or
to refer the matter to the attorney general for prosecution of criminal charges.
(b) As soon as practicable after a complaint under this section is filed, the director
shall examine the complaint to determine whether cause exists for further inquiry.
Should the director find cause, the director shall 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, parties to the complaint shall be given notice by mail by the director
of his or her determination of the controversy, including the amount of the payment
the director recommends as a bond or penalty. Any party shall have the right to appeal
from any determination or order made under this chapter. Any appeal authorized under
this chapter shall be made to the workers' compensation court in the first instance,
and from the workers' compensation court to the supreme court in accordance with § 28-35-30. The director, in his or her discretion, 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 or regulations promulgated by the director, or for the collection
of payments in accordance with § 28-37-13 or penalties hereunder, shall be prosecuted by any 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 giving surety for costs in any proceedings.
(c) The director shall collect all payments under this chapter 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 restricted receipt account to be administered by the director
of the department of labor and training in his or her sole discretion to carry out
the provisions of chapters 29 — 38 of this title.