Ohio business owners owe more than $800K following fraud-related convictions

Three Northeast Ohio men owe the Ohio Bureau of Workers’ Compensation (BWC) more than $800,000 after investigators discovered they were operating their businesses without workers’ compensation coverage.

“These business owners learned the hard way they cannot operate their business without workers’ compensation coverage, and now they owe us hundreds of thousands of dollars,” said BWC Administrator/CEO Stephanie McCloud. “I’m pleased our investigators stopped these employers from continuing to break the law and cheat our system.”

William H. Foster III

William H. Foster III, owner of American Construction Group LTD, pleaded guilty Feb. 11 in a Summit County courtroom to a second-degree misdemeanor of obstructing official business after failing to work with BWC to reinstate his policy. A judge sentenced Foster to credit for time served in jail and to follow the payment agreement he made with the BWC and the Ohio Attorney General’s Office to reinstate his policy. Foster owes BWC more than $360,000 in past premiums and penalties.

Paul “Bob” Collier Jr.

In Stark County, Paul “Bob” Collier Jr. and Miklos Fioretto pleaded guilty on Jan. 17 and Feb. 5, respectively, to a fourth-degree felony charge of workers’ compensation fraud for failing to maintain coverage on their East Sparta, Ohio, business.

Investigators discovered that Fioretto and Collier changed the name of their pallet manufacturing business to avoid paying past premiums and penalties associated with the business.

Both men were sentenced to three years of community service. A condition of probation is to pay BWC restitution of $458,125.

In other news: A Columbus woman was ordered to pay BWC $6,941 in restitution on Tuesday after pleading guilty to a first-degree misdemeanor charge of workers’ compensation fraud.

BWC investigators discovered Jamia Smith, 39, working for a staffing firm while concealing that information from BWC to continue collecting disability benefits. A judge also sentenced Smith to three years of probation in lieu of six months in jail. To report suspected workers’ compensation fraud, call 1-800-644-6292 or visit www.bwc.ohio.gov.

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.

BWC secures six convictions in May

Five Ohio workers and one business owner were convicted in May on workers’ compensation fraud and related charges.

The six convictions raise BWC’s total convictions for the 2019 calendar year to 38.

“When people cheat the BWC system, they are cheating the employers and hard-working Ohioans across this state who play by the rules,” said BWC Administrator/CEO Stephanie McCloud. “Congratulations to our special investigations department for stopping this fraudulent behavior.”

In order of most recent case, those convicted include:

James Nichols of Cleveland, Ohio
BWC investigators found Nichols working as a janitor and office manager while collecting BWC benefits. Nichols pleaded guilty May 13 to one count of workers’ compensation fraud, a first-degree misdemeanor. He was sentenced to 150 days in jail, suspended for two years of community control. He was ordered to pay BWC $3,525 in restitution. He made a $1,000 payment at sentencing.

Deborah Rosenlieb of Cuyahoga Falls, Ohio
Rosenlieb pleaded guilty May 9 in Summit County Common Pleas Court to workers’ compensation fraud, a fourth-degree felony, after investigators found her collecting her late father’s BWC benefits for two years. A judge ordered her to pay BWC $29,418 in restitution and serve two years of community service.

Jesse Lemaster, dba Lemaster Tree Care, Springfield, Ohio
Lemaster pleaded guilty May 8 to two counts of failure to comply, both second-degree misdemeanors, for operating his business without a valid BWC policy. He was sentenced to 30 days in jail on each charge, which was suspended pending a July 10 hearing, at which time he is to prove to the court he has valid workers’ compensation coverage.

Natasha Mitchum of Youngstown, Ohio
Mitchum pleaded guilty May 2 in Franklin County Common Pleas Court to workers’ compensation fraud, a first-degree misdemeanor, after BWC found her working as a call center employee/customer service representative while receiving disability benefits. She was sentenced to 180 days in jail, suspended for three years of community control, and ordered to pay BWC $1,863 in restitution.

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.

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