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Posts Tagged ‘ohio bwc fraud’

Cheating BWC proves costly to workers, business owners

A North Canton woman convicted in May of workers’ compensation fraud must reimburse the Ohio Bureau of Workers’ Compensation nearly $22,000 for collecting benefits while working as a home health aide for nearly two years.

A Franklin County judge on Wednesday also sentenced Diana S. Herrick to five years probation in lieu of an eight-month jail sentence for committing the fifth-degree felony. BWC’s Special Investigations Department (SID) found Herrick provided numerous activities for two individuals while claiming to be too injured to work, including household chores, meal preparation, cleaning and shopping.

“I cannot stress this message enough: Cheating BWC will only cost you more in the long run,” said SID director Jim Wernecke. “It could land you a significant financial debt and criminal record, as well as damage to your reputation and potential for future employment.”

Tyrone Bonner

Also this week, the owner of a Columbus security business pleaded guilty to failure to comply with workers’ compensation laws, a second-degree misdemeanor, after investigators found he under-reported his payroll for four years in order to pay less in BWC premiums. A Franklin County judge on Monday ordered Tyrone Bonner of Dayton to pay BWC $9,527 in restitution.

On the same day in a different Franklin County courtroom, Michael Strickland of Sandusky County pleaded guilty to a misdemeanor count of workers’ compensation fraud after BWC found him delivering mail while collecting injured-worker benefits. He paid BWC $5,096 in restitution prior to his court appearance.

Ghandi Faraj

In other news, SID reported closing several criminal cases in June and one in May not previously publicized.

  • Ghandi Faraj of Lorain pleaded guilty June 30 to a first-degree misdemeanor of workers’ compensation fraud after BWC found him operating a Quizno’s restaurant without BWC coverage when one of his employees filed a claim for a workplace injury. A judge sentenced Faraj to two years of non-reporting probation and ordered him to pay BWC $10,487 in restitution and stay compliant with workers’ comp requirements.
  • Darrin Armstrong of Cincinnati pleaded guilty June 15 to a first-degree misdemeanor theft charge after SID found him using his wife’s BWC debit card multiple times after her death. The investigation found 62 transactions between December 2015 and February 2016 totaling over $4,400. A Hamilton County judge placed Armstrong on eleven months probation and ordered him to reimburse BWC $2,715.
  • Latoria Johnson of Columbus pleaded guilty on June 27 to a misdemeanor count of workers’ compensation fraud after BWC found her working at Worldwide Marketing, Hot Topic and Kroger while simultaneously collecting temporary total disability benefits. She reimbursed BWC $5,307.27 prior to sentencing.
  • Cindi Hackney of Columbus pleaded guilty June 13 to one count of failure to comply, a second-degree misdemeanor, after BWC found her operating her pizza restaurant without BWC coverage. She was ordered to pay a fine and court costs totaling $163. She also paid approximately $5,000 toward her BWC debt.
  • Richard Allison of Columbus pleaded guilty to a first-degree misdemeanor of workers’ compensation fraud after investigators found him working for five separate employers over 13 months while collecting BWC benefits. A judge on June 6 sentenced Allison to five years probation in lieu of a six-month jail term and ordered him to pay $5,149 in restitution to BWC.
  • Mohamad Awad of Toledo, doing business as Everlasting LLC, paid almost $1,000 toward his BWC balance before pleading guilty June 5 in a Toledo courtroom to failure to comply, a second-degree misdemeanor. BWC agents had previously made multiple attempts to bring Awad into workers’ compensation compliance but were unsuccessful.
  • Steve Makris of Canton paid BWC $23,943 in restitution after pleading guilty May 26 to a first-degree misdemeanor of workers’ compensation fraud. Investigators found Makris formed a new business, Eagle Industrial Painting, and collected a salary while receiving benefits from BWC.

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

Former police officer indicted on work comp fraud and other charges related to shooting incident

A former Ohio police officer is facing multiple charges, including inducing panic, forgery and workers’ compensation fraud, after claiming and later recanting that he was shot in the arm during a traffic stop, Ohio Attorney General Mike DeWine announced this week.

A Tuscarawas County grand jury indicted Bryan Eubanks, 37, of Cumberland, Ohio, on June 29. It charged the fired 14-year veteran of the Newcomerstown Police Department with the following:

  • One count of inducing panic, a felony of the fifth degree;
  • One count of making false alarms, a felony of the fifth degree;
  • Two counts of tampering with evidence, felonies of the third degree;
  • One count of forgery, a felony of the fifth degree, and
  • One count of workers’ compensation fraud, a misdemeanor of the first degree.

The charges of inducing panic and making false alarms each carry two firearm specifications.

An investigation conducted by the Tuscarawas County Sheriff’s Office found that on April 11, 2017, then-Officer Eubanks shot himself while on duty, but claimed he was shot by a man in a vehicle after stopping the car for a traffic violation.

“The fictional story that this defendant is accused of concocting led to a response involving local, state, and federal authorities, and an Ohio Blue Alert was issued to put the entire state on alert,” said Attorney General DeWine. “Considerable resources were used to investigate the claims, and there must be consequences for needlessly causing such serious alarm.”

Additionally, an investigation by the Ohio Bureau of Workers’ Compensation found that Eubanks forged workers’ compensation documents to apply for benefits related to his injury.

According to the TimesReporter.com, Eubanks told investigators he made up the story to cover up a failed suicide attempt. He said he had been struggling emotionally following a murder investigation last year.

Eubanks’ arraignment is scheduled for July 17.

Spotlight on SID’s college relations program

Developing tomorrow’s leaders in criminal justice, law enforcement

By Jeff Baker, Program Administrator, BWC Special Investigations Department

Interested in getting coffee? Making photocopies?

You won’t find that at the Ohio Bureau of Workers’ Compensation’s (BWC) Special Investigations Department (SID). SID interns are real employees who do real work as part of our college relations program, now in its 23rd year.

“We’re treated like coworkers,” says Ohio State University student Gabby Master, an intern in SID’s intelligence unit. “We do all the projects everyone else does.”

On top of all that, she adds, “It’s really fun!”

(You can catch Gabby sharing more about her intern experience in this YouTube video.)

Established in 1995, SID’s college relations program promotes the study and practice of criminology, criminal justice, law enforcement and public administration. Since its inception, SID has recruited, selected, oriented and trained more than 300 paid college interns.

Gabby Master, Kelsey Wilson, Loryn Competti and Brianna Belmonte

Many have humbled us with favorable feedback over the years, but we know the credit and accolades go to them. Their careers are testament to their professionalism.

Many have gone on to become officers, criminal investigators, special agents, fraud analysts, digital forensic analysts, assistant special agents in charge, special agents in charge and assistant director.

We’re pleased that for more than 20 years our college relations program has attracted students from a variety of backgrounds, schools and experiences.

Today we have seven talented interns working with our special investigations units (SIUs) statewide. Four college interns (pictured above) are based in our Columbus headquarters: Gabby Master, Kelsey Wilson, Loryn Competti and Brianna Belmonte. Our other SID interns (not pictured) are Allison Castle (Lima), Stephen Kersey (Toledo) and Connor Yuellig (Governor’s Hill).

These interns are here for the same reasons that our past interns have worked with SID. They want a challenge, and that’s what they get.

“Our interns have helped us tremendously over the years,” says SID Director Jim Wernecke. “Their work has helped us convict hundreds of fraudsters and saved the BWC system tens of millions of dollars.”

Are you enrolled at a college or university and interested in joining our team as an intern? If so, I invite you to contact me at Jeffrey.B.1@bwc.state.oh.us.

Construction worker’s fraud scheme collapses

A Marion man who claimed to be permanently disabled owes the Ohio Bureau of Workers’ Compensation (BWC) $160,000 after pleading guilty Wednesday to a fourth-degree felony charge of workers’ compensation fraud.

Appearing in a Franklin County courtroom, Jimmie Rankin, 45, was also sentenced to five years of community control for collecting BWC benefits after he had gone back to work in the construction industry and deliberately withheld that information from BWC.

“We found Mr. Rankin working as a subcontractor and getting paid with cash and checks made out to other people so he could avoid a paper trail and stay beneath our radar,” said Jim Wernecke, director of BWC’s Special Investigations Department. “But thanks in part to tips from honest citizens, we were able to stop this fraud and bring Mr. Rankin to justice.”

Working with Rankin’s employers, investigators determined Rankin had been employed at least since March 2011, a little more than three years after his workplace injury and while he was collecting temporary disability benefits. He later secured permanent total disability benefits from BWC and, while working, collected those benefits from June 2012 to May 2016.

A judged warned Rankin that if he violates the terms of his community control, he would serve 18 months in prison.

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

Try as he might, tree trimmer can’t cheat BWC and get away with it

Akron man earns second conviction for fraudulent activity

An Akron tree trimmer with a history of cheating the Ohio Bureau of Workers’ Compensation (BWC) owes more than $17,000 in restitution to the state agency following his guilty plea last month in a Summit County courtroom.

Matthew Mueller, 46, of Mueller Tree & Landscape, pleaded guilty Feb. 16 in the Summit County Court of Common Pleas to one count of workers’ compensation fraud, a fourth degree felony. The conviction, Mueller’s second on similar charges since 2005, followed a BWC investigation that found Mueller under-reported his payroll to lower his BWC premiums by thousands of dollars.

“It’s unfortunate that one criminal conviction isn’t enough for some people to learn a lesson,” said BWC Administrator/CEO Sarah Morrison. “The funds we recover from Mr. Mueller will go to their proper place — taking care of injured workers and creating safe workplaces across this state.”

A judge sentenced Mueller to 24 months of community control and ordered him to pay $17,366 in restitution to BWC. Mueller also must bring his business into compliance with Ohio workers’ compensation law.

The employer fraud unit of BWC’s Special Investigations Department got a tip in 2012 that Mueller was intentionally under-reporting his payroll. BWC found he was misclassifying employees as subcontractors and advised him how to correctly report his payroll. Three years later, however, BWC found Mueller misclassifying his employees and again under-reporting his payroll, this time by nearly $40,000 for the first half of 2015 alone.

Mueller’s earlier troubles with BWC resulted in a guilty plea in August 2005 to forgery, tampering with records and failure to pay workers’ compensation coverage. He was sentenced to eight months incarceration, suspended, and two years of probation.

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

Burglar adds workers’ comp fraud to rap sheet

A Cincinnati man serving time in an Indiana prison for burglary got a short break from prison March 9, but only to plead guilty to workers’ compensation fraud in an Ohio courtroom.

John Dillard Lewis, 47, pleaded guilty to the fifth-degree felony in the Franklin County Court of Common Pleas, where a judge sentenced him to nine months incarceration, to be served concurrent with his Indiana case. Lewis’s 2015 indictment followed an investigation by the Ohio Bureau of Workers’ Compensation that found Lewis had been working for a Wendy’s restaurant while collecting $32,532 in BWC benefits from June 17, 2013 to Aug. 12, 2014.

Lewis was injured on the job in 2011 while working in a factory. BWC’s Special Investigations Department learned he was working while receiving BWC benefits from a database cross match with the Ohio Department of Job and Family Services. He was indicted in Ohio in 2015 but failed to show for court. Investigators later learned he was in the Indiana prison.

Lewis is serving a nearly six-year sentence in the Branchville Correctional Prison in Indiana for a fourth-degree burglary conviction in Ohio County, Indiana. He was sentenced there last year.

In other recent BWC fraud cases:

  • Patrick Fachman of Columbus pleaded guilty Tuesday to a first-degree count of workers’ compensation fraud for filing two false workers’ comp claims against an employer he no longer worked for. A judge sentenced Fachman to one day of jail time, credited him with one day served, and waived fines and court costs.
  • The owner of a Columbus asphalt company pleaded guilty to a first-degree misdemeanor count of workers’ compensation fraud Feb. 27 after investigators found he had falsified a BWC certificate of coverage to secure a job contract. A judge fined Anthony Evans of A1 Asphalt & Co. $100 and ordered him to pay $134 in court fees.
  • Frank Massingill of Burton, Ohio, was found guilty of a second-degree misdemeanor charge of failure to comply with the law on Jan. 23 for not carrying proper BWC coverage for his business. BWC’s employer fraud team agents tried to work with Massingill to bring him into compliance, but he wouldn’t cooperate. A judge sentenced Massingill to one year of probation and ordered him to pay fees owed to BWC. Massingill also must comply with workers’ compensation rules and regulations, obey all laws and not permanently leave the state without the court’s permission.

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

5 convicted on work comp fraud charges in February

Convictions result of BWC investigations

The Ohio Bureau of Workers’ Compensation secured five convictions in February of Ohioans who cheated the agency out of tens of thousands of dollars.

Those convicted include a Cleveland chiropractor who billed for services he didn’t provide, a longtime injured worker who ran a lawn care business and an injured school bus driver who worked for a limousine service without telling BWC he was working again.

“We’re in the business of taking care of people who are legitimately injured, not subsidizing cheats trying to make an easy buck,” said BWC Administrator/CEO Sarah Morrison. “Any money we recover from these cases will go back to the State Insurance Fund for injured workers and workplace safety initiatives.”

Including February’s total, BWC’s Special Investigations Department has secured 24 convictions so far this calendar year. February’s convictions include:

Michael C. Wilson of Cleveland, Services Not Rendered
Wilson, a chiropractor, refunded BWC more than $57,000 on Feb. 15 and agreed to stop treating injured workers in the BWC system after pleading guilty to workers’ compensation fraud in a Franklin County courtroom. Investigators found Wilson falsified treatment notes and billed for services he didn’t provide. He pleaded guilty to a minor misdemeanor charge of workers’ compensation fraud rather than go to trial.

Jason Neagles of Marion, Working and Receiving
Neagles pleaded guilty to a first-degree misdemeanor charge of workers’ compensation fraud Feb. 21 after investigators discovered him working as a high school bowling coach while collecting BWC benefits. A Franklin County judge ordered him to pay BWC $1,587 for the cost of the agency’s investigation. He also warned Neagles to pay BWC within 90 days or face 90 days in jail.

Robert Campbell of Pickerington, Working and Receiving
Investigators found Campbell, who was injured on the job in 1984, owned and worked a lawn care business while collecting permanent total disability benefits from BWC. He pleaded guilty Feb. 13 to one count of workers compensation fraud, a fifth degree felony, and was ordered to pay $93,457 in restitution to BWC. A Franklin County judge also sentenced him to two years community control.

Robert Willie Jr. of Columbus, Working and Receiving
Investigators found Willie, a school bus driver when he was injured on the job in 2010, working as a limousine driver and office clerk while receiving injured workers’ benefits. He pleaded guilty Feb. 7 to a fifth-degree charge of workers’ compensation fraud. A Franklin County judge ordered him to reimburse BWC $80,000 and serve five years probation.

Beverly Ritchie of Tiffin, Working and Receiving
Ritchie pleaded guilty Feb. 28 to one count of workers’ compensation fraud, a first-degree misdemeanor, after investigators found her working for a doctor’s office while receiving temporary disability benefits. The judge ordered her to pay BWC $5,340 in restitution, which she paid immediately.

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