A Cincinnati construction company owner has been sentenced to 18 months in prison for mail fraud and embezzlement from the company’s 401(k) program.
Ron Craig Estes, owner of R&R Steel, LLC, pleaded guilty to mail fraud and theft from an employee benefit plan in January 2020.
According to court documents, Estes devised a scheme in 2015 to skirt Occupational Safety and Health Administration (OSHA) requirements by buying fake employee training certifications to avoid costs and time associated with ensuring all employees had completed appropriate safety training. R&R received a $450,000 contract for the 8th and Sycamore project in Cincinnati.
Court documents also revealed that Estes embezzled between $15,000 and $40,000 from the company’s 401(k) retirement benefit plan established for workers.
Estes completed distribution forms for workers who had left the company and forged their signatures on distribution checks to cash them for his own benefit. The Ohio Department of Commerce found that the company had violated prevailing wage laws for the 8th and Sycamore project and ordered R&R Steel, LLC to pay $292,276.33, including $150,789.09 in past wages due and $141,487.24 in penalties.
Estes’ scheme was particularly egregious as many of the victims were limited English proficient, migrant workers who feared reporting his criminal activities.
The U.S. Department of Labor Office of Inspector General investigated the case, and Assistant United States Attorney Ebunoluwa Taiwo represented the United States in this case.
Victims of this fraud can contact the Department of Labor at 1-866-444-3272.
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Key Facts
- State: Ohio
- Category: White Collar Crime, Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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