A West Virginia man and two Kentucky residents have been sentenced for their roles in a workers’ compensation scheme.
The Charleston Gazette reported that Jerome Edward Russell of Williamson, Frelin R. Workman of Belfry, Ky. and his son, Randy Workman of Belfry, each pleaded guilty to tax evasion and aiding in the scheme.
U.S. District Judge John Copenhaver sentenced both Russell and Frelin Workman to 30 months in prison. Randy Workman received a 15-month sentence.
Russell and Frelin Workman are principals in Aracoma Contracting LLC. Prosecutors said former BrickStreet Mutual Insurance Co. auditor Arville Sargent of Chapmanville allowed Aracoma and three other companies to under-report their payroll in exchange for cash and other items.
Sargent pleaded guilty in March to mail fraud and tax evasion charges.
Topics Fraud Workers' Compensation Virginia Kentucky West Virginia
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