A Lima (Allen County) business owner appeared in court recently after he failed to maintain workers’ compensation insurance coverage and later solicited the help of an acquaintance in an attempt to avoid paying past due premiums. Douglas Fay and Laurel Seiner were sentenced in the Allen County Court of Common Pleas.
The Special Investigations Department began investigating Douglas Fay after receiving information from BWC’s Collections Department that two premium payments for his business, Fay Crushing and Stone LLC, had been returned for non-sufficient funds, resulting in the policy lapsing. Fay had previously been investigated by BWC for failing to maintain coverage for his other businesses.
Fay was interviewed by agents and admitted he knew the payments would not clear the bank. Several months after interviewing Fay, agents received information advising Laurel Seiner had submitted an application for coverage for a stone crushing business and listed herself as the owner.
Agents interviewed Seiner and learned she was the secretary and bookkeeper for several of Fay’s businesses, including Fay Crushing and Stone LLC. When submitting the application, Seiner stated there were no other policies associated with her business. Agents interviewed Seiner and she stated Fay was now her employee. When questioned, Seiner initially denied conspiring with Fay to open a new policy in order to get a valid certificate of coverage. However, she eventually admitted Fay asked her to open a policy in her name because his policy was not in good standing and he needed a valid BWC certificate.
Laurel Seiner and Douglas Fay entered into the diversion program on Feb. 11. Seiner pleaded guilty to one third-degree felony count of tempering with records. She was sentenced to three years post release control, and ordered to pay $8,599.72 in restitution.
Fay pleaded guilty to one third-degree felony count of tempering with records, one fifth-degree felony count of workers’ compensation fraud and one fifth-degree felony count of passing bad checks. Fay was sentenced to five years post release control, and ordered to pay $14,448.92 in restitution.