More Charges Against PEO Owner Accused of Insurance Fraud

Wednesday, December 16, 2015 | 0

The owner of a professional employer organization stole tens of thousands of dollars from three companies that thought they were buying workers' compensation insurance, prosecutors in Pennsylvania allege.

Alfonso Joseph Sebia, of Lehighton, faces 119 charges of fraud, forgery and theft for allegedly taking a total of more than $178,076 from the companies, then failing to provide insurance.

This follows his arrest in September on similar charges. In that case, he allegedly entered into an agreement with Mac Sign Systems, of Scranton, to provide insurance but did not do so. He is accused of taking $7,112 from the company.

A further investigation into Sebia and his companies -- America Coast to Coast Business Solutions and NIKS Inc., both professional employer organizations, and Halo Insurance, an insurance broker -- led to his arrest on the latest charges.

Magisterial District Judge Alyce Hailstone Farrell arraigned Sebia, 63, Monday on the new charges, according to the Times Tribune of northeastern Pennsylvania. The investigation is led by the Northeastern Pennsylvania Insurance Fraud Task Force.

The latest charges include one count of insurance fraud, 49 counts of forgery and one count of theft by failure to make the required disposition of funds.

These charges stem from allegations that Sebia billed WorkForce Resources, a temporary staffing company based in Sunbury, $31,083 for insurance premiums but did not provide coverage. He is alleged to have provided 49 forged certificates of insurance.

A second complaint, involving the same charges, alleges he took $124,272 from asbestos removal company Sargent Enterprises, of Jim Thorpe, but never provided workers' compensation coverage.

Landscaping firm Shady Tree Inc, of West Chester, was billed $22,721 for insurance, but Sebia kept the money, the fraud task force claims.

Sebia was arraigned at Lackawanna County Central Court, then released on his own recognizance. A preliminary hearing is scheduled for Dec. 29 in the same court.