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Ohio Employer James Coon Pleads Guilty to Involuntary Manslaughter and Workers’ Compensation Fraud after Death of Gerardo Juarez Sr.

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blur-builders-building-159306-300x200James D. Coon, owner of James Coon Construction company in Akron, Ohio, pleaded guilty to involuntary manslaughter, a third-degree felony, on July 24th. The charges came after Gerardo ‘Jerry’ Juarez Sr., one of his workers, fell to death while working without safety equipment in 2017. Coon’s attorney has not made any statements as of yet.

Additionally, Coon further pleaded guilty to a workers’ compensation fraud charge, a fourth-degree felony, in a Summit county courtroom. According to the Ohio Bureau of Workers’ Compensation’s (BWC) findings, Coon, 53, did not have any BWC coverage whatsoever when Juarez died.

Moreover, Coon allegedly lied on multiple occasions to hide the precise nature of his business to avoid paying insurance premiums. The employee, Gerardo ‘Jerry’ Juarez Sr., aged 39, was on the second day of his job when the accident occurred. It was November 4th, 2017, and Juarez was working on a sloped roof on top of a three-story apartment building with no fall protection or any other safety equipment when he slipped and fell 25 feet.

Juarez died on the spot. The BWC was notified of the accident four days later by the federal Occupational Safety and Health Administration. On further investigations by BWC, it was revealed that at least two employees under Coon Construction had been injured before Juarez’s death while working without safety equipment.

Coon reportedly had no BWC coverage during this time. Furthermore, BWC records showed that Coon had reported to the BWC that his business was no longer operational. However, just five months after Juarez’s death, in May 2018, BWC agents reportedly spotted six of Coon’s employees working at a site without any safety equipment or proper gear.

Coon continuously reported that he had no employees, according to records. However, an audit done by BWC showed something entirely different. Coon had nearly $286,000 under employee payroll during July 2009 and July 2018, sources indicate.

Coon’s case is an example of how employers commit workers’ compensation fraud to avoid paying premiums. Currently, Coon is liable to pay $303,152 to BWC in the account of outstanding premiums and cost of claims by workers who were injured during work due to lack of proper equipment and coverage. Coon’s plea agreement was entered on July 24th, under which further homicide and fraud charges were dropped

Christopher Parker, from Coon’s attorney’s office, has refused to comment until after the sentencing. Sentencing is scheduled for August 21st, according to court records. The BWC also reported that Coon could face up to five years in prison and a fine of up to $10,000 for the third-degree felony involuntary manslaughter charges.

It is not known whether Juarez’s family intends to take legal action to seek compensation for their loss. Juarez left behind a wife and five children.

Similar to Coon’s case, another contractor in Toledo, Ohio was recently ordered to pay $57,000 in restitution and three years of probation for committing workers’ compensation fraud.

If you believe your employer or someone around you is involved in workers’ compensation fraud, or if you’ve been accused of workers’ compensation fraud, you should hire a lawyer. Contact us today to take the first steps towards the best possible legal outcome for you.

Source: 8.8.2019 Coon Juarez Workers Comp

Two Business Owners Found Guilty of Workers’ Compensation Fraud

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columbus-1618317_1920-300x183Two business owners in Ohio have been convicted for failing to have workers’ compensation insurance coverage for their employees.

The Ohio Bureau of Workers’ Compensation (BWC) first began investigating James T. Wilson, age 53, of New Albany when it was suspected the two companies he was owner and president of were operating without workers’ compensation coverage. Wilson ran both Performance Companies—which specialized in paving as well as hauling topsoil, concrete, and stone—and the Enviro Recycling Group, which specialized in the recycling of metal, asphalt, and concrete.

Investigators only took Wilson to court once it became clear he did not intend to purchase coverage. “We attempted to work with Mr. Wilson to bring his business into compliance with Ohio law,” explained Jim Wernecke, the director of the bureau’s Special Investigations Department. “Ultimately, we had to go with this course of action.” Wilson pleaded guilty to the count of “Failure to Comply,” a second-degree misdemeanor.

This is not the first time Wilson has failed to comply with Ohio workers’ compensation law. Nine years ago, he was found guilty of a fourth-degree felony charge of theft. Back then, Wilson was ordered to pay over $180,000 in restitution to the bureau. Wilson will be sentenced later, once bureau investigators have completed their audit of his businesses.

Workers’ compensation insurance can represent a significant overhead for business owners. I have reported on companies across the United States that have attempted to reduce their workers’ comp rates or even avoid paying them altogether. Recently, for example, I looked at the case of Salvatore Carbone in California, who falsely claimed he was the only employee at his two restaurants. I also reported on John Stergion of Texas, who concealed payroll to reduce his company’s workers’ compensation rates. Both men were found guilty of workers’ compensation insurance fraud.

In 2018, Ohio’s workers’ compensation premium rate index was $1.40 for every $100 of payroll. While this is 82% of the national median of $1.70 per $100 of payroll, the costs still add up. Not only that, but for high-risk industries such as those engaged in by both of Wilson’s companies, premiums end up being far higher.

Wernecke explained that he understood the pressures on business owners. “I can’t say this enough to employers in our system: If you’re struggling with your BWC premiums, reach out to our agency and work with us,” he said. “Don’t risk a criminal conviction.”

Another Ohio business owner, Yue Liang, was also found guilty of workers’ compensation fraud. Liang owns New Sheng Hung Inc., a company that delivers dairy, meat, and vegetable products to Chinese restaurants in Pennsylvania and Ohio. Liang was sentenced to a year of community control. He also agreed to carry adequate workers’ compensation insurance and pay the $5,500 he owed BWC. He will also pay $2,000 in restitution.

This is not Liang’s first brush with the law. In 2014, one of his delivery trucks was stopped for an inspection. Police found the food inside had spoiled and that the refrigeration unit was broken. After further investigation, police discovered an additional seven of Liang’s trucks had faulty refrigeration.

Florida Workers’ Compensation Fraud Defense Attorney

If you are involved in a worker’s compensation fraud investigation, then you should hire a lawyer. Contact us to set up a free initial consultation and work with one of Florida’s most experienced workers’ compensation fraud defense attorneys.

Source

2018-11-23 Two Ohio Business Owners Convicted for Failing to Carry Workers’ Comp Coverage