July 18, 2017

Federal Prisoner Adds Workers’ Comp Fraud to Record

Columbus, OH – A Cleveland-area man serving time in a federal prison on corruption charges recently added workers’ compensation fraud to his rap sheet when he pleaded guilty to the fifth-degree felony in a Franklin County courtroom.

A judge sentenced James Todt, 50, of Brecksville, to nine months in prison, to be served concurrently with the 30-month prison term he received last fall for a scheme involving cash bribes and kickbacks when he worked for a Cleveland-based nonprofit housing agency.

“We don’t let anyone slide on workers’ compensation fraud, even if they’re already in prison,” said BWC Administrator/CEO Sarah Morrison. “We will bring them to court to face justice, and we will pursue any funds they fraudulently received.”

BWC’s Special Investigations Department started looking at Todt in July 2015 after a crossmatch with the Ohio Department of Jobs & Family Services revealed he was employed while concurrently receiving disability benefits from BWC. The investigation revealed that Todt was working for a construction company while claiming to be disabled and unable to work. He was found to have fraudulently received $33,400 from BWC.

Todt is scheduled to be released in April 2019 from a federal prison in Morgantown, West Virginia. He was sentenced last October after pleading guilty in June to conspiracy to commit bribery and two counts of theft concerning federal funds. Todt admitted to steering construction contracts to two businesses in exchange for bribes and kickbacks while he worked at Cleveland Housing Network, an umbrella nonprofit made up of 15 community development corporations.

Source: Ohio BWC SID

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