Annandale Couple Charged with Insurance Fraud


(FOX 9) – An Annandale, Minnesota couple has been charged with insurance fraud in connection to their drywall company, Merit Drywall.

According to the Hennepin County Attorney’s Office, Leroy and Joyce Mehr are facing two counts of insurance fraud and one count of theft by swindle in a scheme they used to avoid paying for workers compensation insurance required to protect injured workers.

According to the criminal complaint, from April 2016 to April 2017, the Mehrs defrauded workers’ compensation insurance providers for hundreds of thousands of dollars by intentionally misrepresenting the number of workers Merit Drywall employed.

The attorney’s office reported that on Feb. 5, 2016, the couple submitted a worker’s compensation application to their insurance provider, Federated Insurance. Four months later, Federated Insurance audited Merit Drywall to review their workers’ compensation policy. According to the complaint, Joyce Mehr provided Federated with records which falsely claimed that their business had 11 employees while dozens of workers were independent subcontractors.


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