PEO Owner Convicted of Defrauding BWC

Tuesday, June 12, 2018 | 0

The owner of an Ohio professional employer organization pleaded guilty last week to wire fraud and money laundering after federal prosecutors charged that he defrauded the Bureau of Workers' Compensation by underreporting payroll.

Prosecutors with the U.S. Attorney’s Office for the Southern District of Ohio said 58-year-old John R. Caraco of West Chester pocketed much of the money that his clients paid for workers’ compensation premiums instead of remitting the funds to the BWC.

Caraco, owner of Employers Choice Plus, underreported his payroll by millions of dollars, saving $425,000 in workers’ compensation premiums.

Caraco used the profits of the scheme to fund lavish personal purchases, including a second home in Naples, Florida, and a motor home.

Caraco has agreed to pay $425,246.58 in restitution as part of his plea agreement. U.S. District Judge Michael Watson has ordered probation officials to write a pre-sentencing report before sentencing.