Cleaning Company Owner Pays $43K Restitution to Ohio Workers’ Comp Insurer

The owner of a Columbus, Ohio, cleaning company who continued to run his business after his workers’ compensation insurance lapsed in 2010 has paid more than $43,000 in restitution to the Ohio Bureau of Workers’ Compensation (BWC), the insurer announced.

Gyorgy Benedek, owner of Maintenance Free Building Services Inc., pleaded guilty to a reduced charge of Failure to Comply after submitting a check to BWC for $43,069 in the Franklin County Court of Common Pleas. The plea followed a BWC investigation that revealed Benedek provided falsified BWC certificates of coverage to land a cleaning contract with another company.

BWC said it received a tip that the cleaning company’s workers’ comp certificates “looked suspicious.”

Among BWC’s findings:

• Benedek provided three BWC certificates showing the signature of former BWC Administrator/CEO Marsha P. Ryan when it should have been the signature of her successor, Stephen Buehrer.
• The certificates were dated during a period Benedek’s policy was lapsed.
• Benedek reported zero payroll between 2009 and 2015, but a BWC audit found he had more than 30 employees during that time and unreported payroll of more than $650,000.

Source: Ohio BWC