Insurance Fraud NEWS
Payroll firm cheats Ohio comp agency out of $425K
December 05, 2018, Columbus, OH
The owner of a former payroll services company in Ohio was sentenced to six months in federal prison and fined $10,000 Tuesday for defrauding the Ohio Bureau of Workers' Compensation out of more than $425,000, the bureau announced Tuesday.
John R. Cacaro, 59, owner of the now-defunct Employers Choice Plus LLC, was convicted in June on wire fraud and money laundering charges after BWC and Internal Revenue Service investigators discovered a scheme he concocted to short BWC on the insurance premiums he received from employers and pocket the difference, according to a statement.
Mr. Cacaro was also sentenced to one year of house arrest and three years of supervised release, according to the statement.
“Multiple businesses entrusted Mr. Cacaro with processing their payroll and remitting insurance premiums to our agency and he broke that trust,” Jim Wernecke, director of BWC’s special investigations department, said in the statement.
“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,” IRS Special Agent-in-Charge Ryan L. Korner said in the statement.
Mr. Cacaro on Tuesday submitted a cashier’s check to the court for $425,247 in restitution to BWC, according to the bureau.
Source: Business Insurance