Related Federal Cases
- James Blocks Trump’s Social Services Cuts · Washington
- James Halts AmeriCorps Funding Dismantling · Washington
- James Blocks Trump’s HHS Dismantling Order · Washington
- James Blocks President’s Illegal Vote Grab · Illinois
- James Battles Banks Over $5.8B Overdraft Rip-Off · Washington
Multi-Million Dollar Scam Brings Down Business Owner
Gregory J. Chmielewski, 46, of West Bend, Wisconsin, has pleaded guilty to two counts of mail fraud in a scheme that misappropriated millions of dollars from his business, Independent Management Resources (IMR).
According to his plea agreement, Chmielewski set up IMR as a professional employer organization and solicited an Indian tribe to partner with him and provide employee insurance coverage and other employee services at a reduced cost. He marketed the insurance coverage to California employers as a low-cost alternative workers’ compensation coverage.
With his low rates, Chmielewski was successful in obtaining employer clients. However, he began diverting and misappropriating millions of dollars from IMR accounts for his personal use. The company eventually experienced serious cash flow problems and was forced to cease operations, leaving approximately 117 injured workers with approximately $1.8 million in unpaid claims.
The case is the result of an investigation by the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the California Department of Insurance. Assistant U.S. Attorneys Heiko P. Coppola and Andre’ Espinosa are prosecuting the case.
Chmielewski is scheduled to be sentenced on April 1, 2016, by U.S. District Judge Garland E. Burrell Jr. He faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or up to twice the gain or loss from the offense.
The court will determine the actual sentence after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Chmielewski’s actions have left a trail of financial devastation in California, with many individuals and businesses suffering as a result of his greed. His sentencing will be a crucial step in bringing closure to those affected by his actions.
RELATED: California Restaurant Owner Sentenced to 30 Months for Covid-19 Relief Fund Fraud
RELATED: Singapore Swindler Sentenced to 57 Months for $9M IPO Scam
Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
