A West Chester Twp. business owner has pleaded guilty to federal charges as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation.
John R. Cacaro, 58, pleaded guilty today in United States District Court in Cincinnati to wire fraud and money laundering, according to the United States Department of Justice
MORE: Man who robbed Butler County bank to buy engagement ring sentenced to prison
Cacaro used the profits of his scheme to “fund lavish personal purchases,” according to court documents, including a second home in Naples, Fla., and a motor home.
According to court documents, between 2011 and 2013, Cacaro owned Employers Choice Plus LLC, a company that processed payroll and remitted insurance premium payments to the Ohio BWC on behalf of client companies.
More than 100 client companies would provide Cacaro’s company with payroll information, and in his scheme, he understated the payroll by millions of dollars. That resulted in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from client employers.
MORE: Butler County businesses: Here’s what opened, closed and announced plans in May
In total, Cacaro under-reported more than $425,000 in workers’ compensation premiums.
“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Ryan Korner. “Now he is a convicted felon and must repay the stolen money.”
As part of his plea agreement, Cacaro has agreed to pay the total amount of $425,246.58 in restitution.
“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director Jim Wernecke. “It hurts employers who follow the law and play by the rules, and it hurts the injured workers who rely on us to help them get back to work and back to their lives as soon as safely possible.”
Wire fraud is a federal crime punishable by up to 20 years in prison. Money laundering is punishable by up to 10 years in prison. A sentencing date has not yet been set.