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Posts Tagged ‘Cuyahoga County’

Northeast Ohio business owners owe BWC nearly $1.3 million following fraud convictions

Two northeast Ohio businessmen must pay the Ohio Bureau of Workers’ Compensation (BWC) nearly $1.3 million in restitution following their recent convictions on multiple fraud charges in separate, unrelated cases.

“We look forward to recouping these dollars and directing them where they belong — taking care of injured workers, creating safe workplaces, and giving employers excellent coverage and service,” said BWC Administrator/CEO Stephanie McCloud.

Sentenced Monday in a Cuyahoga County courtroom, Robert E. Fitz must pay BWC $961,956 in monthly installments and serve five years of probation for his Sept. 30 conviction on a fourth-degree felony charge of workers’ compensation fraud.

Fitz, an attorney and owner of Action Maids residential cleaning company in Westlake, Ohio, had refused to cooperate with BWC to bring his lapsed policy into compliance, leaving the agency to pick up the costs on 43 injury claims since 2003, five in the last five years.

On Oct. 21 in Stark County, a judge ordered an Alliance man to pay BWC $300,230 in restitution after BWC found him defrauding the agency in multiple ways, including working at two businesses he owned while collecting workers’ compensation for work injuries he claimed left him permanently and totally disabled.

Roger L. Kale, Jr., 51, also must serve five years of probation and perform 100 hours of community service. BWC’s Special Investigations Department also found the following:

  • To establish his compensation rate for his 2009 workplace injury, Kale reported wages for himself that were higher than what he reported on his BWC payroll reports for all of his employees combined.
  • Kale operated A-1 Brosch Tree Service without workers’ compensation coverage required by Ohio law.
  • Kale under-reported his payroll and misclassified his employees to lower the cost of his BWC premiums.
  • Kale presented clients an altered BWC certificate of coverage to make it appear his business had coverage when it did not. One client reported Kale to BWC.

Video obtained from the Ohio State Highway Patrol shows Kale operating a tow truck while claiming to be permanently disabled.

Kale pleaded guilty to one count of tampering with records, a fourth-degree felony; three counts of workers’ compensation fraud, all fourth-degree felonies, and two first-degree misdemeanor charges of workers’ compensation fraud.

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

Nearly $1 million owed BWC in employer fraud case

Cleveland-area business owner convicted of fraud Monday

A northeast Ohio business owner owes the Ohio Bureau of Workers’ Compensation nearly $1 million in restitution following his conviction Monday in Cleveland on workers’ compensation fraud charges.

Robert E. Fitz, an attorney and owner of Action Maids residential cleaning company in Westlake, Ohio, pleaded guilty to a fourth-degree felony charge of workers’ compensation fraud after refusing to cooperate with BWC to bring his lapsed policy into compliance.

“Mr. Fitz owes at least $965,000 in unpaid premiums and for the costs of injured worker claims that occurred while his policy was lapsed,” said BWC Administrator/CEO Stephanie McCloud. “If he had just followed the law and paid his premiums, he wouldn’t be in this trouble today.”

At his conviction hearing in the Cuyahoga County Court of Common Pleas, Fitz agreed to work with BWC and the Ohio Attorney General’s Office to provide his company’s financial reports and enter a reinstatement payment plan prior to his sentencing date of Nov. 4.

According to BWC’s Special Investigation Department, Fitz’s BWC policy has been lapsed since Sept. 1, 2003. Since then, BWC has picked up the costs on 43 injury claims, including five since 2014.

In other fraud news, a northeast Ohio man must pay BWC nearly $79,000 in restitution after pleading guilty to a fifth-degree felony charge of workers’ compensation fraud Tuesday in a Franklin County courtroom.

Ronald J. Dorfeld of Brunswick, Ohio, must pay BWC $78,957 and serve five years of probation in lieu of a nine-month jail sentence for working while collecting BWC disability benefits.

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

Ohio woman keeps BWC benefits alive after father dies

Owes BWC more than $29,000 after fraud conviction

A northeastern Ohio woman pleaded guilty May 9 to workers’ compensation fraud after investigators with the Ohio Bureau of Workers’ Compensation (BWC) found her collecting her father’s benefits for more than two years after he died.

Deborah Rosenlieb of Cuyahoga Falls pleaded guilty to the fourth-degree felony in the Summit County Common Pleas Court, where a judge ordered her to pay BWC $29,418 in restitution. The judge also ordered Rosenlieb to serve two years of community service.

“Ms. Rosenlieb’s father was receiving death benefits on behalf of his late wife, but when her father died in January 2016 she didn’t let us know,” said BWC Administrator/CEO Stephanie McCloud. “She knew she wasn’t entitled to these benefits, but she used them for personal expenses until we learned of her scheme in April 2018.”

In other news:

A Cleveland man must pay BWC $3,525 in restitution after pleading guilty Monday to a misdemeanor count of workers’ compensation fraud after BWC found him working as a maintenance technician and office manager while collecting disability benefits.

James Nichols, 57, also must serve two years of probation and pay court costs. He paid $1,000 toward his restitution prior to entering his guilty plea in the Franklin County Common Pleas Court.

A Youngstown woman pleaded guilty May 2 to a misdemeanor count of workers’ compensation fraud after BWC found her working for a call center while collecting disability benefits.

A Franklin County judge ordered Natasha Mitchum, 42, to pay BWC $1,863 in restitution and serve three years of probation.

A Canton electrician avoided a potential felony conviction for workers’ compensation fraud May 1 by paying BWC $54,220 in restitution prior to his sentencing.

John Griggy, 48, pleaded guilty to a misdemeanor count of workers’ compensation fraud for working intermittently from 2013 through 2016 while collecting disability benefits. A Cuyahoga County judge waived fines and court costs.

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

Maple Heights woman guilty of fraud, ordered to repay more than $4K

A Maple Heights (Cuyahoga County) woman has been ordered to repay more than $4,000 to the Ohio Bureau of Workers’ Compensation (BWC) after she pleaded guilty to workers’ compensation fraud.

An investigation was opened into Brandy Davis after BWC’s Special Investigations Department received information through a cross match of data with the Ohio Department of Jobs and Family Services. The cross match indicated that Davis had received wages during a period of time when she was receiving benefits for a workplace injury.

The investigation confirmed Davis worked for Beech Brook, a children’s behavioral health center, and the Jewish Family Services Association (JFSA), both in Cleveland, while receiving temporary total disability benefits.

Davis entered a guilty plea to one first-degree misdemeanor count of workers’ compensation fraud on February 3 in the Franklin County Court of Common Pleas. Judge Holbrook sentenced Davis to 180 days in jail, suspended for five years of community control, under the condition that she pay restitution totaling $4,639.75.