Metal scrapper, business owner guilty of work comp fraud

A Columbus man on disability benefits for a workplace injury must reimburse the Ohio Bureau of Workers’ Compensation (BWC) $35,000 after investigators found him collecting and selling 46 tons of scrap metal during a time he purported to be disabled.

Richard Claffey, 53, pleaded guilty Wednesday to a fifth-degree felony count of workers’ compensation fraud in the Franklin County Court of Common Pleas. In addition to restitution, he must serve five years of community control in lieu of six months in prison.

“An anonymous source told us Mr. Claffey was ‘junking’ everyday, picking up refrigerators and stoves and driving through alleys every evening to collect metal and sell it to local scrap yards,” said Jim Wernecke, director of BWC’s Special Investigations Department (SID). “Some might call ‘junking’ more of a hobby than a profession, but we found Mr. Claffey made a living from these efforts, which disqualified him from receiving BWC benefits.”

Claffey suffered a workplace injury in 2010 while working for a landscaping company.

In other fraud news, a Carroll County business owner with lapsed BWC coverage pleaded guilty to workers’ comp fraud after failing to bring his business into compliance despite multiple efforts by BWC staff to help him do so. Investigators found the owner even changed the name of his business and applied for new coverage to avoid paying his BWC debt.

Warren Kelm, owner of Augering Technologies/Coal Auger Pro Inc.,  pleaded guilty to the first-degree misdemeanor April 20 and paid $14,515 toward the balance he owes to BWC.

“We appreciate the financial challenges of running a business, but if an employer is falling behind on their BWC premiums, they need to call us and we’ll work with them,” said SID Director Wernecke. “Cutting corners or trying to cheat the system will always cost them more in the long run.”

Kelm is now operating with proper coverage. A judge sentenced him to three years of community control in lieu of six months in jail.

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