Grimy Times Exclusive
John R. Cacaro, 58, of West Chester, Ohio, has pleaded guilty to wire fraud and money laundering as part of a scheme to defraud the Ohio Bureau of Workers’ Compensation for his own personal gain.
Cacaro, the owner of Employers Choice Plus, LLC, a company classified by the Ohio BWC as a Professional Employment Organization (PEO), was responsible for processing payroll and remitting insurance premium payments to the Ohio BWC on behalf of their client employers.
Between 2011 and 2013, Cacaro’s company received payroll information from over 100 client companies, computed the amounts owed to employees, taxing authorities, and the Ohio BWC, and sent weekly invoices to the client companies, who would then pay Employers Choice Plus electronically. Cacaro’s company issued the employees’ paychecks, paid the taxing authorities, and maintained the workers’ compensation premiums until they were due to be paid semi-annually.
However, Cacaro understated the payroll by millions of dollars, resulting in a lesser amount of premiums owed to the Ohio BWC, despite having collected the correct amounts from its client employers. In total, Cacaro underreported more than $425,000 in workers’ compensation premiums.
Cacaro used the profits of the scheme to fund lavish personal purchases, including a second residence in Naples, Fla. and a motor home.
As part of his plea agreement, Cacaro has agreed to pay the total amount of $425,246.58 in restitution.
“John Cacaro lined his pockets with the hard-earned money of his clients and systematically defrauded the Ohio BWC,” said Special Agent in Charge Korner. “Now he is a convicted felon and must repay the stolen money.”
“Anyone who cheats BWC to enrich themselves is driving up the cost of the whole system, and that hurts all of us,” said Director 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.”
Cacaro faces up to 20 years in prison for wire fraud and up to 10 years in prison for money laundering.
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Key Facts
- State: Ohio
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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