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Business Owner Fined for Workers' Comp Fraud
COLUMBUS, Ohio -- A Cortland business owner is one of 14 individuals convicted of, or who pleaded guilty to, charges related to defrauding Ohio's workers' compensation system in May. Gary Frederick, doing business as Top Notch Diner, pleaded no contest May 7 to charges related to a dishonored check for his premiums payment.
Frederick was convicted in 2010 for attempting to pass a bad check to the Ohio Bureau of Workers' Compensation for a premium payment of his company, the bureau says. In March 2011, Frederick reinstated his coverage. However, it lapsed in September 2011 after Frederick submitted another check to BWC that was returned for to nonsufficient funds.
Frederick subsequently submitted two additional checks to the bureau that were returned, against for insufficient funds in his checking account. Topnotch Diner continued to operate without Workers' Compensation coverage.
Agents met with Frederick several times, attempting without succcess to have him make good the dishonored payments. Frederick was ordered to pay the fine and court costs for each of the three misdemeanor counts. He entered a payment plan with the office of the state attorney general.
Published by The Business Journal, Youngstown, Ohio.
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