According to reports, it was discovered that Gates was operating his business with employees but was not complying with workers’ compensation laws. The man was investigated twice before on the same issue. The Employer Fraud Team has had its eye on Gates and finally got the conviction it was looking for.
The EFT attempted to work with Gates to bring him into compliance with laws. The business owner refused to comply. Gates would not provide officials with past payroll reports that were deemed necessary to calculate his insurance premiums. Gates also failed to pay towards an outstanding balance that he has with the Bureau of Workers Compensation.
Gates entered a no contest plea in court. The judge handed down a suspended sentence of 180 days in jail along with fines and court costs. The bureau is again trying to work with Gates and help him achieve compliance with state laws. Whether or not a sentence looming over his head will help Gates to comply remains to be seen.