A Connellsville insurance agent and his business have been charged by the state attorney general with failing to provide workers' compensation insurance for his employees.

William R. McCandless, 79, president of McCandless Insurance and Real Estate Inc., located at 317 Ninth St., is charged with 1,054 counts of failure to insure, a third-class felony. He allegedly told an investigator he could not afford a policy.

Special Agent James Wabby, of the Pennsylvania Office of the Attorney General, filed a police criminal complaint against McCandless and his business with District Judge Ronald Haggerty. The complaint alleges that McCandless failed to provide workers' compensation to his employees from Aug. 12, 2006 through July 31, 2009. The affidavit explains "as the president and operator of McCandless Insurance and Real Estate Inc. intentionally operated a business in violation of Section 305 of the Pennsylvania Workers' Compensation Act, in that he failed to procure workers' compensation insurance to cover employees and was not exempted as a self insurer, each day constituting a separate offense and a separate count."

The investigation was instigated by the Western Regional Office of the Insurance Fraud Section of the Office of the Attorney General based on a referral by Investigator William Beates of the Pennsylvania Bureau of Workers' Compensation Compliance Section; the Office of the Attorney General has assumed jurisdiction.

Beates provided the Office of the Attorney General with information contained in the complaint. McCandless' business was incorporated on May 8, 1995, with McCandless incorporator and president. "According to the Self-Insurance Division of the Department of Labor's Bureau of Worker's Compensation, McCandless Insurance and Real Estate never received approval to self-insure its workers' compensation liability. According to the Pennsylvania Compensation Rating Bureau, McCandless Insurance and Real Estate has never provided workers' compensation coverage for its employees between May 3, 1995, and March 31, 2008."

The complaint indicates, "However, according to Department of Labor and Industry records, McCandless Insurance and Real Estate paid wages to employees during each quarter from the beginning of 1996 through the third quarter of 2008.

During an interview with Beates on Aug. 17, 2006, McCandless allegedly said "that he has no workers' compensation insurance coverage for his business, McCandless Insurance and Real Estate. Beates explained to McCandless that he needs to acquire a policy or he could face criminal prosecution for failing to provide workers' compensation coverage for his employees."

Wabby interviewed McCandless on June 25, 2009 and he allegedly told Wabby "that he was aware of his responsibility to obtain and maintain workers' compensation insurance coverage for McCandless Insurance and Real Estate employees. He said he could not afford to purchase the policy."

McCandless was released on his own recognizance. A preliminary hearing has been tentatively scheduled for 1 p.m. Thursday before Haggerty.

Judy Kroeger can be reached at jkroeger@tribweb.com or 724-626-3538.