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Ohio Businessman Sentenced for Workers’ Comp Fraud Now Faces Civil Action

June 14, 2011 - WorkCompWire

COLUMBUS – The Ohio Bureau of Workers’ Compensation (BWC) is seeking an injunction against a Pepper Pike man recently sentenced for operating his business without proper workers’ compensation insurance coverage while his employees filed multiple claims. The injunction would require Anthony Gray, owner of Gray Container, to discontinue operations until he becomes fully compliant with workers’ compensation law and takes action to repay the more than $600,000 he owes BWC. It is the first time the bureau has sought this type of injunction.

“This is one of the most egregious cases of an employer simply ignoring laws meant to protect workers,” said BWC Administrator/CEO Stephen Buehrer. “His indifference to the law and the wellbeing of his workers has compelled us to seek an injunction to ensure the company meets its obligations.”

Gray allowed his policy to lapse in September, 2006 and despite repeated attempts by BWC to assist Gray in becoming compliant, he continued operating his business without coverage. During that time, 25 claims filed against his policy and he now owes BWC in excess of $600,000. Ohio law ensures benefits for the injured workers even if the employer is without coverage, and the money owed will help reimburse BWC for the cost of treating those workers.

The injunction, which is scheduled for a June 21 hearing in Cuyahoga County, is not the first legal action related to the case. On May 4, Gray entered a no contest plea and consented to a finding of guilty to two counts of failure to comply with workers’ compensation law. He was sentenced to one year of active probation, ordered to complete 80 hours of community work service, and sentenced to 90 days of suspended incarceration.

Source: Ohio BWC

Filed Under: Claims, Legal, & Compliance News, Top Stories - Recent, WCW Inner Page Featured - Recent, Workers' Compensation

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