Trucker kept truckin’ while collecting injured-worker benefits

Zanesville man convicted of workers’ comp fraud

A Zanesville truck driver must pay nearly $8,000 in restitution to the Ohio Bureau of Workers’ Compensation (BWC) after agency investigators found him working for a living while collecting BWC disability benefits.

Douglas J. Krouskoupf, 53, pleaded guilty Jan. 9 to a first-degree misdemeanor count of workers’ compensation fraud in the Franklin County Court of Common Pleas. A judge sentenced Krouskoupf to 180 days in jail, which he suspended on the condition Krouskoupf pay BWC $7,924 in restitution.

“We found Mr. Krouskoupf working for his brother’s sandblasting business on multiple occasions and that he was also driving a semi-truck while collecting BWC benefits,” said Jim Wernecke, director of BWC’s special investigations department. “Our benefits are for people who suffer a workplace injury and can’t do their job. Mr. Krouskoupf clearly doesn’t fit into that category.”

In other news, BWC netted seven fraud or fraud-related convictions in December, bringing calendar year 2018’s total to 94. In order of most recent case, December convictions include:

Jason Dudas, Mentor, Ohio
Dudas pleaded guilty Dec. 13 to one count of workers’ compensation fraud, a first-degree misdemeanor, after BWC found him working as a handyman while receiving BWC benefits. A judge ordered Dudas to pay $5,073 in restitution and serve three years of non-reporting probation.

Gabriel Seda, Grafton, Ohio
Seda pleaded guilty Dec. 6 through a Bill of Information to a fifth-degree felony count of workers’ compensation fraud after BWC found him working as a landscaper while receiving BWC benefits. A Franklin County judge ordered Seda to reimburse BWC $33,960 and sentenced him to five years of probation in lieu of a year in prison.

John House, Chris Kraft and Lynn Howard, dba Old Crow Bar, Middletown, Ohio
House, Kraft and Howard, owners of the Old Crow Bar, each pleaded guilty Dec. 3 to disorderly conduct, a fourth-degree misdemeanor, after BWC discovered they weren’t carrying workers’ compensation coverage on their business. A judge sentenced House to 10 days in jail (suspended) and fined him $200 and $90 in court costs. Kraft and Howard were both sentenced to one day in jail (suspended) and fined $100 and $90 in court costs.

Brian Lang, dba Outdoor Inspirations, Holland, Ohio
Lang pleaded guilty to a third-degree misdemeanor charge of attempted failure to comply with the law Dec. 3 after BWC discovered him running a business without workers’ compensation coverage to protect his employees. A judge scheduled sentencing for Jan. 28 after Lang paid $5,304 toward the balance he owes BWC.

Beth Turner, dba Flashions Ltd, Springfield, Ohio
Turner pleaded guilty Dec. 3 to failure to comply, a minor misdemeanor, after BWC found her operating her business without workers’ compensation coverage. Turner was fined $100 and court costs.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.

 

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Auld Lang Syne…

Standout fraud cases in 2018

By Melissa Vince, BWC Public Relations Manager

Soon we’ll all be counting down and singing that classic New Year’s song to say farewell to 2018 and hello to 2019. Or maybe you’re like me and you’ll wake up at 12:05 a.m. to realize you missed another countdown.

In the spirit of Auld Lang Syne, which roughly translates as “for old times’ sake,” we thought we’d look back at some of our more notable cases in 2018. Since January, we shared 48 blogs covering claimant, provider and employer workers’ compensation fraud cases. The following cases stand out in our memory:

Thanks for your support this year. We were proud to celebrate our 25th year of investigating, detecting and deterring fraud in Ohio. Now it’s on to 26!

And thanks for following the BWC Fraud Blog. We hope you’ll stay tuned here in 2019 for more on the latest news and information on workers’ comp fraud in Ohio. Don’t forget to also follow our Facebook page.

Cheers! Okay, everyone now: Should auld acquaintance be forgot….

Home Depot shopping trip blows fraudster’s cover

Mentor man caught working as handyman while collecting BWC benefits

 

A northeast Ohio landscaper must pay the Ohio Bureau of Workers’ Compensation (BWC) a little more than $5,000 in restitution after the agency’s investigators found him working while collecting injured-worker benefits.

Jason Dudas, 39, of Mentor, pleaded guilty Dec. 13 to one count of workers’ compensation fraud, a first-degree misdemeanor, in the Franklin County Court of Common Pleas. A judge ordered Dudas to pay BWC $5,073 in restitution and serve three years of non-reporting probation.

“We got a tip that Mr. Dudas might be working after someone spotted him getting into a truck loaded with construction supplies at a Home Depot store,” said Jim Wernecke, director of BWC’s special investigations department. “We checked it out and found Mr. Dudas working as a handyman while collecting BWC benefits. This behavior isn’t just illegal, it’s expensive and unfair because it drives up the costs of our workers’ comp system for everyone.”

In other business, a Toledo-area business owner pleaded guilty to attempted failure to comply with the law Dec. 3 after BWC discovered him running a business without workers’ compensation coverage to protect his employees.

Brian Lang, owner of Outdoor Inspirations of Holland, Ohio, pleaded guilty to the third-degree misdemeanor charge in Sylvania Municipal Court after paying $5,304 toward the balance he owes BWC. A judge scheduled sentencing for Jan. 28.

“Our investigation revealed Mr. Lang had several employees and therefore he absolutely should be carrying workers’ compensation insurance,” said Wernecke. “We put him on notice to become compliant with the law, but he failed to do that and that’s why he found himself in court Dec. 3.”

Outdoor Inspirations is a specialty landscaping and tree service company, according to its website. The company’s workers’ comp policy remains lapsed.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.

Cleveland-area businessman convicted of workers’ comp fraud

‘Disabled’ man plows snow, mows lawns

A northeast Ohio business owner must pay the Ohio Bureau of Workers’ Compensation (BWC) nearly $34,000 in restitution after the agency found him working and running a business while collecting disability benefits.

Gabriel Seda of Grafton, Ohio, pleaded guilty Dec. 6 through a Bill of Information to a fifth-degree felony count of workers’ compensation fraud. A judge in the Franklin County Court of Common Pleas ordered Seda to reimburse BWC $33,960 and sentenced him to five years of probation in lieu of a year in prison.

“Our investigation found Mr. Seda plowing snow, mowing lawns and landscaping for a business he owned, GS Snow Removal and Lawn Care,” said Jim Wernecke, director of BWC’s special investigations department. “Clearly, he wasn’t so disabled that he couldn’t work.”

In other news, the owner of a graphic design and screen-printing shop in Springfield who failed to turn herself in to the court earlier this year pleaded guilty to “failure to comply” Dec. 3 after BWC’s fugitive task force tracked her down in November.

A judge fined Beth Turner, owner of Flashions LTD in Springfield, $100 and court costs for the minor misdemeanor charge. Turner’s conviction followed a BWC investigation that found her running her business with employees under lapsed BWC coverage. She was charged in May after she stopped cooperating with BWC to bring her policy back into compliance. She has since done so.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.

Southwest Ohio business owner gets prison time, hefty fine for work comp fraud

Business owner defrauded BWC of $425K

The owner of a former payroll services company in southwest Ohio was sentenced to six months in federal prison and fined $10,000 today for defrauding the Ohio Bureau of Workers’ Compensation (BWC) out of more than $425,000.

John R. Cacaro, 59, owner of the now-defunct Employers Choice Plus LLC, also must serve one year of house arrest and three years of supervised release under a sentence handed down by U.S. District Judge Michael H. Watson in the U.S. District Court for southern Ohio.

“Multiple businesses entrusted Mr. Cacaro with processing their payroll and remitting insurance premiums to our agency and he broke that trust,” said Jim Wernecke, director of BWC’s special investigations department. “Justice was served today and I can’t thank our partners in this investigation enough, the IRS Criminal Investigation unit and the U.S. Attorney for the Southern District of Ohio.”

Cacaro was convicted in June on wire fraud and money laundering charges after BWC and IRS investigators discovered a scheme he concocted to short BWC on the insurance premiums he received from employers and pocket the difference.

“John Cacaro made a conscious decision to keep over $425,000 in workers’ compensation premiums so he could live a lavish lifestyle that included the purchase of a second residence in Naples, Florida, and a motor home,” said IRS Special Agent in Charge Ryan L. Korner. “Now he is a convicted felon headed to prison.”

At his sentencing today, Cacaro submitted a cashier’s check to the court for $425,247 in restitution to BWC. He noted that he has voluntarily closed Employers Choice Plus and he will likely have gainful employment through his car transportation business when he leaves prison.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.

Drug-trafficking nurse practitioner, other work comp cheats convicted in November

December 7, 2018 1 comment

Eight Ohioans convicted on workers’ compensation fraud or related charges in November include a Springfield nurse practitioner who pleaded guilty to felony drug trafficking and a Cleveland-area man who collected $245,000 in disability benefits while working construction jobs since 2009.

Douglas Shrewsbury pleaded guilty Nov. 16 to several drug charges in the Clark County Court of Common Pleas after multiple authorities found him running a pain clinic without a proper license. The charges included aggravated trafficking in drugs, a first-degree felony, aggravated possession of drugs, a second-degree felony, and Medicaid fraud, a fourth-degree felony.

“Mr. Shrewsbury wrote 56 prescriptions for schedule II narcotics to injured workers in our system without an overseeing physician, which is beyond his scope and illegal,” said Jim Wernecke, director of the Ohio Bureau of Workers’ Compensation special investigations department.

Other agencies involved in the investigation included lead agency the Ohio Board of Pharmacy, the Springfield Police Department, Ohio Board of Nursing, State Medical Board of Ohio, Attorney General’s Medicaid Fraud Control Unit, Ohio Bureau of Criminal Identification and Investigation, and the Clark County Prosecutor’s Office.

Shrewsbury’s sentencing is scheduled for Dec. 27.  

In the Cleveland-area case, Louis Cooper of North Royalton pleaded guilty Nov. 19 in a federal courtroom to one count of theft of government property and wire fraud. He was released on a $20,000 unsecured bond and must surrender his passport and participate in a pre-sentence investigation prior to his March 5 sentencing.

Acting on a tip, BWC investigators found Cooper working as a self-employed general contractor, installing flooring and drywall and remodeling bathrooms. Due to concealing his work activity, Cooper fraudulently secured approximately $245,000 in benefits from the Social Security Administration and BWC, of which $167,000 came from BWC.

In order of most recent court appearance, other BWC subjects convicted in November include:

Dean Richards of Lancaster
Richards pleaded guilty Nov. 29 to one count of workers’ compensation fraud, a first-degree misdemeanor, after BWC agents found him working as a construction subcontractor while receiving permanent disability benefits from BWC. He was sentenced to 23 days in jail, credited for time served, and ordered to pay BWC $6,614 in restitution.

James T. Wilson Jr, dba Performance Companies, of New Albany
Wilson pleaded guilty Nov. 19 in a Columbus courtroom to a second-degree misdemeanor count of failure to comply after BWC investigators found him operating Performance Companies LLC/Enviro Recycling Group without workers’ compensation coverage. Sentencing will occur after BWC finishes auditing his business records.

Dwayne Dotson of Cleveland
Dotson pleaded guilty Nov. 14 to one count of workers’ compensation fraud, a fifth-degree felony, after BWC found him working as a self-employed general contractor while receiving disability benefits. He was given three years of probation and ordered to pay BWC $14,453 in restitution.

Yue Liang, dba New Sheng Hung, of Cleveland
Liang pleaded guilty Nov. 13 to a first-degree misdemeanor charge of workers’ compensation fraud after he lapsed on a repayment plan related to his 2014 conviction on a similar charge. The food warehouse and market owner agreed to pay BWC $5,500 toward the balance owed to the agency and an additional $2,000 in restitution. He was sentenced to one year of community control and ordered to bring his policy into compliance.

Douglas Rheaume of New Franklin
Rheaume pleaded guilty Nov. 13 to a fifth-degree felony count of workers’ compensation fraud after BWC found the former sheriff’s deputy operating a baseball training facility and working as an insurance agent while collecting BWC benefits. A judge sentenced Rheaume to a suspended nine-month prison term and ordered him to serve two years of probation. Additionally, he was ordered to pay $56,000 in restitution to BWC.

Stephanie Terry, dba Universal Fleet & Tire Service, of Cincinnati
Terry pleaded guilty Nov. 5 to one count of obstructing official business, a second-degree misdemeanor, after BWC found her operating her business with employees and lapsed BWC coverage. Two of her employees had filed injury claims while the coverage was lapsed. Terry paid $27,947 to BWC for the balance she owed the agency.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.

Two Ohio business owners convicted for failing to carry workers’ comp coverage

Second conviction for both employers

A Columbus-area business owner with a criminal history against the Ohio Bureau of Workers’ Compensation pleaded guilty Monday to failing to carry workers’ compensation coverage on his asphalt paving business.

James T. Wilson Jr., 52, of New Albany, pleaded guilty in a Columbus courtroom to a second-degree misdemeanor count of failure to comply after BWC investigators found him operating Performance Companies LLC/Enviro Recycling Group without workers’ compensation coverage. The plea came nine years after Wilson’s first case with BWC, when he pleaded guilty to a fourth-degree felony theft charge and was ordered to pay BWC more than $180,000 in restitution.

“We attempted to work with Mr. Wilson to bring his business into compliance with Ohio law, but ultimately we had to go with this course of action,” said Jim Wernecke, director of BWC’s special investigations department. “I can’t say this enough to employers in our system: If you’re struggling with your BWC premiums, reach out to our agency and work with us. Don’t risk a criminal conviction.”

Wilson’s sentencing will be scheduled for a later date after BWC has finished auditing his business records.

In other news, the owner of a food warehouse and market in Cleveland pleaded guilty Nov. 13 to a first-degree misdemeanor charge of workers’ compensation fraud after he lapsed on a repayment plan related to his 2014 conviction on a similar charge.

Yue Liang, owner of New Sheng Hung, agreed to pay BWC $5,500 toward the balance owed to the agency and an additional $2,000 in restitution. He was sentenced to one year of community control and ordered to bring his policy into compliance.

To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit bwc.ohio.gov.