Valley residents convicted of workers’ comp fraud

Staff report

Columbus

Two Mahoning Valley residents have been convicted of charges related to defrauding Ohio’s workers’-compensation system.

Janell Howell was found guilty of two counts of failure to comply for operating without the required workers’-compensation insurance coverage.

The Ohio Bureau of Workers’ Compensation’s special-investigations department investigated after Howell did not cooperate with repeated attempts by BWC’s Employer Compliance Department to bring her business, Jump Start Child Development Center in Youngstown, up to date on its policy. Howell was ordered to pay $300 per month for the next five years while on probation and pay court costs and probation fees. If the full amount owed of $18,547 is paid during her probation, her probation will be terminated at the time the debt is paid.

If Howell fails to make any payment, she will return to court and may serve up to 90 days in jail.

Howell completed required payroll reports but failed to establish a payment plan or make payment. She was found guilty in Youngstown Municipal Court and her attorney initially advised she would not be establishing a payment plan as she was losing her Ohio Department of Job and Family Services license to run the center. She stated that another person would take over the business. Investigators advised that the debt would carry over to the new owner under the BWC’s successorship rule, and Howell subsequently agreed to make the payment.

William Vargas Jr. of Youngstown pleaded guilty to workers’-compensation fraud. He was accused of altering wage statements to receive benefits for periods in which he did not work.

The special-investigations department received an allegation from a claims service specialist who managed Vargas’ workers’ compensation claim.

The BWC employee noticed irregularities in pay-stub information submitted by Vargas for his employment with Niles Manufacturing and Signs by Tomorrow. The employee specifically noted that the “year-to-date” earnings listed on the pay stubs did not change from week to week.

The investigation found Vargas purposely altered pay stubs and wage statements so that he could receive Living Maintenance Wage Loss benefits for periods in which he did not work, and therefore did not incur a wage loss. Investigators also found that Vargas worked for GLI Pool Products during the time he received those benefits.

He was not permitted to work while receiving living maintenance benefits. Vargas was sentenced to two years of probation. As a condition of probation, he is required to repay $6,107 in restitution.