Directory of Workers’ Compensation Premium Fraud
Page 25
DIRECTORY OF WORKERS’ COMPENSATION PREMIUM FRAUD
The individuals and companies listed in this directory have been defendants in criminal proceedings, or have been named in civil actions by regulatory agencies or have been accused of fraud in civil litigation. The information is based on allegations in pleadings, news articles, press releases or other public information. In many cases, the individuals and entities are merely accused of fraudulent activities - no verdict has been entered. As each press release from the Justice Department states: “All defendants are presumed innocent.”
AAA Painting and Waterproofing, Inc. - see Rutherford Miniard
AAA Roofing and Supply, Inc. - see Rutherford Miniard
Action Staffing - see David Miller
Administrators, Inc. - see Gary Newsom
Admiral Systems, Inc. - see Robert J. Anderson
Alexander, John Scott
Alexander was the president and owner of Elite Steel, Inc. in Oveida, Florida. He was arrested in 1998 on charges of organized fraud of $50,000 or greater and four counts of workers’ compensation fraud. Alexander allegedly lied to his workers’ compensation providers from September, 1994, to July, 1997, to evade over $200,000 in premium. For the same period that Alexander reported payroll of $93,000 and $96,000 to his carrier, he reported wages of $727,800 to the Florida Department of Labor and Employment Security.
Alliance Temporary Services, Inc. - see Gary Newsom
Alliance Transnational Services, Inc. - see Gary Newsom
Alvarez Construction
Alvarez Construction was one of the targets of a grand jury investigation in San Diego, California, which culminated with the indictment of six southern California companies and 21 individuals in June, 2001. All were accused of concealing payroll through a cash payment scheme involving an employee leasing company, MG Enterprises. See MG Enterprises.
Alvarez, Jose Luis - see MG Enterprises
Alvarez, Kim Lee - see MG Enterprises
American Labor Exchange - see Robert J. Anderson
American Payroll Network - see Laurie Weinlein
American Staff Management, Inc. - see Mark Boerman
American Workforce - see James Borgelt, Sr.
Anderson, Eric Roger - see MG Enterprises
Anderson, Robert J. “Skip”
Robert J. "Skip" Anderson was charged with conspiracy, Mail Fraud, Aiding and Abetting and Causing An Act To Be Done as a result of multiple employee leasing schemes in California and Texas. He was convicted and sentenced to 27 months in federal prison and ordered to pay $300,000 in restitution. His co-defendant, John Junk, was sentenced to 18 months in federal prison, three years' supervised release. Co-defendant Alyce Laird was sentenced to 3 years' probation; co-defendant Robert Laird was sentenced to 46 months’ confinement in federal prison, supervised release of three years and restitution in the sum of $7,250,000.
Defendants allegedly created sham companies in order to get workers' compensation insurance from the California state fund for employee leasing companies at below market rates. The damages in the scheme were $22 million. Companies associated with Anderson and his co-defendants included the following: Admiral Systems, Inc., American Labor Exchange, Central Systems, Inc., Shannon Group, Inc.; Harbor Operations Group, Inc., U.M.C., Inc. and Western Labor Exchange, Inc. These companies all operated as employee leasing companies in California from 1986 to 1992.
USA v. Howard J. Laird, a/k/a James Laird, a/k/a Preston Smith; Alyce L. Laird, a/k/a A. Lavon Good, a/k/a Lavon Good and John L. Junk and Robert J. Anderson, a/k/a Skip Anderson, Case No. CR 93-1085, United States District Court, Central District of California. (Prosecutors: Terree A. Bowers, United States Attorney; Robert L. Brosio, Assistant U.S. Attorney, Chief, Criminal Division, John F. Walsh, III, A.U.S.A., Chief, Major Frauds Section.)
Antares Resources, Inc. - see David Miller
Armstrong Plastering and Drywall - see William Johnson
Arno, Carmen - see James Borgelt, Sr.
Ascona - see Joe Gall
Aune, Mona - see Rutherford Miniard
Automative Staffing, Inc. - see James Borgelt, Sr.
Baltierri, Vicki - see Morteza Jafari
B.I.S. Inc. - see Charles Garavaglia
B & B Acoustical Contractors - see Paul Buonopane
B & D Drywall - see Kraig Wayne Bryan
B & M International Marketing - see James Borgelt
Bailey, Griffin Benjamin, Jr. - see C. Chapman-Allyn
Bandits Express - see Larry Brossard
Bardzick, Michael J.
Bardzick was the president of Golden Labor Service, Inc. of Hollis, NH. He pleaded guilty on April 8, 1996, to 12 counts of failure to pay employer tax contributions, four counts of workers' compensation premium fraud and one count of a continuing scheme larceny of property over $250. Bardzik misclassified employees as independent contractors and provided false information to Liberty Mutual on the number of Golden Labor employees to avoid paying $426,463 in workers' compensation premiums. He was sentenced to serve 30 days in the Massachusetts House of Corrections, to be followed by a suspended sentence, with probation supervision for six years.
Commonwealth of Massachusetts v. Bardzick, Case No. 95-1686, Superior Court of Suffolk County, Boston, Massachusetts.
Barthell Construction and Roofing Company - see David Sherman Barthell
Barthell, David Sherman
Barthell and his wife, Mary Victoria Barthell, operated Barthell Construction and Roofing Company in Contra-Costa County, California. The Barthells were convicted of insurance fraud for misclassifying some of their roofers as clerical and sales employees. They were each sentenced to five years’ probation and ordered to pay restitution of $187,000 to the state fund. They also filed for bankruptcy.
Barthell, Mary Victoria - see David Sherman Barthell
Bass, Wesley - see Rutherford Miniard
Beightol, Richard - see James Borgelt, Sr.
Benvenuti Pizzeria & Italian Restaurant - see Benito Storniolo
Bernstein, Norman H. - see John J. Boutin
Best Management - see Ken DeSalvo
Bird, Robert - see James Borgelt, Sr.
Blackwell, Victor S. - see Robert Wayne Long
Bland, James Concrete, Inc. - see James Bland
Bland, James Lenier, Sr.
Bland operated James Bland Concrete of Brevard, Inc. He was charged with workers’ compensation insurance fraud in February, 2003, for operating without workers’ compensation fraud even though he had seven employees. Bland paid his employees in cash to avoid detection.
Bo Assoc., Inc. - see James Borgelt, Sr.
Bodyworks Company, Inc. - see Stephen J. Mazzola
Boerman, Mark P.
Boerman was indicted in Rochester, New York in December, 2002, for defrauding the New York State Workers’ Compensation Board. Boerman owned Executive Resources, Inc., d/b/a Payforce, a temporary help business. Boerman also owned American Staff Management, Inc. He submitted claims for the first company, which was uninsured, to the State Fund, which insured the second company, American Staff Management. The indictment alleged that Boerman wrongly submitted over $1.4 million in claims. Boerman was indicted on 38 counts. Boerman was sentenced on May 12, 2003, to five years’ probation.
Bohan, Brian - see Dennis Termine
Borgelt, James, Sr.
Borgelt controlled Miller Personnel, Inc., d/b/a American Workforce and B & M International Marketing, Inc., the exclusive marketing agent for American Workforce. He was charged with diverting funds given to his companies for payment of taxes and insurance premiums to his personal use. He was sentenced to 36 months' incarceration and ordered to pay restitution of $416,000.
John James Jenkins, in his capacity as Chapter 7 Trustee for Miller Personnel, Inc. d/b/a American Workforce; John Litzler, in his capacity as Chapter 7 Trustee for the American Workforce 401(K) Profit Sharing Plan and Trust and in his capacity as Trustee of the American Workforce 401(K) Profit Sharing Plan and Trust; State of Texas; Texas Department of Insurance; Texas State Board of Insurance; and Attorney General of Texas v. Alexander Hamilton Life Insurance Company of America; West Coast Life Insurance Company; Capital Advisors, Inc., in its Corporate Capacity and as Trust Administrator of the AWF Business Trust; Capital Investment Managers; Fernandez & Co., P.C.; Pension Consultants & Administrators, Inc.; National Annuity Programs, Inc.; Insurance Marketing Specialists, Inc.; James Borgelt, Sr., Janet Causey; Janet Jezierski; Corey Marver; William Bradley Fagan; James Borgelt, Jr.; John Borgelt; Ernesto Ornelas; Carmen Arno; Don Jason Diaz; Tom G. "Tommy" Moore; Vestell Wright; David Mathwig; Martin F. Traynor; Daniel A. Johnson; Richard Beightol; Carl Waychoff; Mark A. Wilson; Jan Edwards, individually; Terry L. Edwards, individually; Terry L. Edwards d/b/a Edwards & Associates; Edward T.Thurman; William R. Harden; Len Quick; Robert K. Dangremond; Brian P. Sanford; James G. Dahl; Robert J. "Skip" Anderson; Robert I. Fernandez; Robert Bird; C.J. "Posty" Roberts;Raul Corral; Bob Ferguson; Betty B. McConnell; Byron W. Stuckey; Johann Wasserman; Staffing Systems, Inc.; B & M International Marketing, Inc.; Moore Marketing & Associates,Inc.; Automative Staffing, Inc.; Resource Staffing, Inc.; Tri-Staff, Inc.; STSL, Inc.; Bo Assoc., Inc.; Compensation Plus, Inc.; Charles Gray & Co., P.C.; Charles Gray; Human Resources, Inc.; Preferred Consulting Company; Professional Services, Inc.; America's Business Services, Inc. Via Temps, Inc.; Brian P. Sanford, P.C.; Farmer & Jones; Robert C.Whittington; Group II Financial, Inc.; Triple T Sales; Jan Edwards, d/b/a Edwards & Associates; Bank of America National Trust & Savings Association, in its corporate capacity and as Trustee of the AWF Business Trust; Baker R. Rector; Baker R. Rector, P.C.; ADP, Inc.; Managistics, Inc., d/b/a Davenport Data Processors, Inc., d/b/a Bank of America, Case No. 93-CV-463, United States District Court, Northern District of Texas (Dallas).
USA v. James Borgelt, Sr., Case No. 3-95CR-358-ALL, United States District Court, Northern District of Texas, Dallas Division.
Borgelt, James, Jr. - see James Borgelt, Sr.
Borgelt, John - see James Borgelt, Sr.
Boutin, John J.
Boutin of Andover, Massachusetts, was a principal of N.B. Jon-Son Steel Erectors, one of the largest reinforcing bar contractors in Boston. Boutin allegedly conspired with an insurance consultant, Norman Bernstein, to fraudulently reduce workers' compensation premium for his companies by concealing almost 50% of the company's $11 million payroll and by misclassifying workers in high-risk jobs.
Mohawk Construction Company, Inc., incorporated in Massachusetts in 1992, purchased the assets of N.B. Jon-Son Steel Erectors, Inc., allegedly so that N.B. Jon-Son Steel Erectors, Inc. could escape its high debit experience modification factor. Boutin, treasurer of N.B. Jon-Son Steel Erectors, Inc. and N.B. Jon-Son Construction Company, Inc. pleaded guilty to one count of conspiracy and five counts of mail fraud in December, 1995. He was sentenced to one year and one day in federal prison, and three years' supervised probation thereafter. He was also ordered to pay restitution of $3,081,707 to Liberty Mutual Insurance Company.
Norman Bernstein, a financial consultant to the N.B. Jon-Son companies, also pleaded guilty to one count of conspiracy and five counts of mail fraud. Bernstein was sentenced to 37 months' in federal prison, and three years' of supervised probation thereafter. He was also ordered to pay $2,721,911 in restitution.
USA v. John J. Boutin and Norman H. Bernstein, Case No. 95-10145 WGY, United States District Court, District of Massachusetts. (Prosecutor: Assistant U.S. Attorney Paul Levenson, Boston, Massachusetts.)
Branch International Services - see Charles Garavaglia
Branco Construction
Branco Construction was one of the targets of a grand jury investigation in San Diego, California, which culminated with the indictment of six southern California companies and 21 individuals in June, 2001. All were accused of concealing payroll through a cash payment scheme involving an employee leasing company, MG Enterprises. See MG Enterprises.
Bray, James
Bray, also known as James Graves, and his wife, Martha Bray, also known as Martha Ortiz, operated a roofing compamny, Roofing Unlimited, in Santa Clara, California. They operated their company without obtaining a contractor’s license, without paying taxes and without purchasing mandatory workers’ compensation. They were charged with 22 felony counts.
Bray, Martha - see James Bray
Bray, Ronald - see Dennis Lambka
Bridge Cleaning Service, Inc. - see William Johnson
Brigham, Karen
Brigham was the principal of H & H Trucking, Inc. She was charged in 1994 with organized fraud and grand theft for her role in falsely claiming that employees were independent contractors. Brigham's was the first criminal insurance premium fraud case to be tried by jury in Florida. She was convicted of both counts. Brigham was sentenced to six months' incarceration and three years' supervised probation.
State of Florida v. Karen Brigham, Circuit Court of the Ninth Judicial District, Orange County, Florida.
Brossard Excavating - see Larry Brossard
Brossard, Larry
Brossard, and his wife, Phyllis Ann Brossard, were charged in March, 2002, by the Washington Department of Labor and Industries, with knowingly reporting false payroll to L&I in order to lower the workers’ compensation premium for several of their companies, including Bandits Express, a trucking company, Brossard Excavating and Bumper Boats. The Brossards were charged with evading over $82,000 in premium and $224,000 in taxes between August, 2000, and March, 2002.
Brossard, Phyllis Ann - see Larry Brossard
Brough, Kevin Todd
Brough operated an employee leasing company, Solutions of Utah, in Kaysville, Utah. He was charged in a 20-count indictment in March, 2002, for allegedly stealing more than $1 million in workers’ compensation premiums and $1.2 million in tax withholdings from clients. The scheme was exposed when several employees suffered serious work-related injuries and found there was no insurance.
Brown, William - see Charles Lee Smith
Bryan, Kraig Wayne
Bryan owned and operated B & D Drywall in Homestead, Florida. He allegedly underreported his payroll by nearly $800,000 to his workers’ compensation providers, AmComp Assurance and Bridgefield Casualty. The underreporting occurred on 41 consecutive monthly self-audits between June 1999 and December 2003. He was charged in May, 2003, with two felony counts of insurance fraud.
Budget Payroll Service - see Vincent Marconi
Bumper Boats - see Larry Brossard
Buonopane, Paul
Paul Buonopane and his brother, Robert Buonopane, were charged with conspiracy, mail fraud, wire fraud and aiding and abetting in the preparation and presentation of false returns. Paul and Robert Buonopane owned B & B Acoustical Contractors, Inc., a construction contracting company in Woburn, Massachusetts. The Buonopanes conducted a concealed payroll scheme in order to defraud the IRS, workers' compensation insurance carriers and the Massachusetts Carpenters' Union. The Buonopanes were convicted of 29 counts on February 16, 2001, after a six-week jury trial. They were sentenced to 12 months' incarceration and 24 months' supervised release.