Past "Failure To Insure" Prosecutions

Section 305 of the Pennsylvania Workers’ Compensation Act specifies that an employer’s failure to insure its workers’ compensation liability is a criminal offense and classifies each day’s violation as a separate offense, either a third-degree misdemeanor, or, if intentional, a third-degree felony.

 

First-time offenders may be eligible to enter into an accelerated rehabilitative disposition (ARD) program. Defendants who enter into an ARD program waive their right to a speedy trial and statute of limitations challenges during the period of enrollment; they further agree to abide by the terms imposed by the presiding judge. Upon completion of the program, defendants may petition for the charges to be dismissed. Although acceptance into the program does not constitute a conviction, it may be statutorily construed as a conviction for purposes of computing sentences on subsequent convictions.

 

The Bureau Compliance Unit reports the following successful prosecutions for violation of Section 305.

Joseph C. Bellisario Jr., owner of Bellisario Builders, in Bethel Park, pled no contest to 12 misdemeanor counts of the third degree on Oct. 20, 2008, in the Allegheny County Court of Common Pleas for failing to insure his workers’ compensation liability. Judge Edward J. Burkowski placed Bellisario on probation for a period of eight years and ordered him to pay the costs of prosecution as well as restitution in the amount of $48,118 to an injured employee. The Bureau’s Compliance Unit reports that Bellisario Builders is no longer in business.

 

Kenneth DeHonney, owner of NEJ Abatement Group Inc., in Coraopolis, pled guilty to two misdemeanor counts of the third degree on Jan. 24, 2008, in the Allegheny County Court of Common Pleas for failing to insure its workers’ compensation liability. Judge Randel B. Todd placed DeHonney on probation for a period of one year and fined him $3,500. The Bureau’s Compliance Unit reports that NEJ Abatement Group Inc. is now in compliance with the Pennsylvania Workers’ Compensation Law.

On Nov. 30, 2007, Michael James Mortorano, owner of Merchandise Movers Inc., entered a guilty plea to charges which included Section 305(b) of the Workers’ Compensation Act, 77 PA C.S. Section 501(b), Workers’ Compensation Insurance Fraud and Theft by Deception. On April 30, 2008, Judge Scott Lash sentenced Mortorano to one to 23 months incarceration, followed by six months home confinement with electronic monitoring. Mortorano will also serve seven years probation. Judge Lash also ordered Mortorano to pay restitution in the amount of $193,080.22 to an injured employee and $300,000 to the PA State Workers Insurance Fund (SWIF). Mortorano was also fined $50,000. Mortorano’s corporation, Merchandise Movers Inc., received a sentence of guilty without further penalty. The Bureau’s Compliance Unit reports that Merchandise Movers Inc. is no longer in business.

M & S Roofing & Siding Inc. and its owner, Martin Sidorchuck, in Warrington, each pled guilty to nine misdemeanor counts of the third degree on Jan. 22, 2008, in the Bucks County Court of Common Pleas for failing to insure its workers’ compensation liability. Judge Albert J. Cepparulo sentenced Sidorchuck to seven years of probation, with terms including payment of restitution in the amount of $93,108.06 to an injured employee and payment of the cost of prosecution. M & S Roofing & Siding Inc. was also sentenced to pay the restitution amount, as well as costs of prosecution. The Bureau’s Compliance Unit reports that M & S Roofing & Siding Inc. is no longer in business.

Paul Banks, owner of Banks Trucking LLC in Springboro pled guilty to six misdemeanor counts of the third degree on Dec. 5, 2008, in the Crawford County Court of Common Pleas for failing to insure his workers’ compensation liability. Judge John F. Spataro sentenced Banks to pay the costs of prosecution and placed him on probation for 12 months for each count, to be served concurrently. Banks was also fined $600 and was ordered to pay restitution to an injured employee in the amount of $5,651.22. The Bureau’s Compliance Unit reports that Banks Trucking LLC is no longer in business.

Carlisle Sports Emporium Inc., owned by Keith L. Plasterer in Carlisle, pled no contest to six misdemeanor counts of the third degree on Jan. 9, 2008, before Magisterial District Judge Thomas A. Placey. Carlisle Sports Emporium Inc. was ordered to pay $15,000 in fines, costs and expenses. The Bureau’s Compliance Unit reports that Carlisle Sports Emporium Inc. is now in compliance with the Pennsylvania Workers’ Compensation Law.

Judge Patricia H. Jenkins entered Sotirios Kosmidis, in Folcroft, into the Accelerated Rehabilitative Disposition Program for first-time offenders on Oct. 20, 2008, in the Delaware County Court of Common Pleas. Sotirios Kosmidis was placed on probation for one year, ordered to pay the costs of prosecution and fined $5,000. Kosmidis was also ordered to perform 16 hours of community service and reimburse the Bureau of Workers’ Compensation $211 for costs expended to secure unemployment compensation documents. The Bureau’s Compliance Unit reports that Folcroft Pizza & Delicatessen Inc. is now in compliance with the Pennsylvania Workers’ Compensation Law.

Joseph Young, owner of Manor Roofing, in Indiana, was sentenced on Aug. 1, 2008, by Judge Gregory A. Olson. Young pled guilty to four misdemeanor counts of the third degree, was sentenced to four years probation and was fined $1,000 plus court costs. The Bureau’s Compliance Unit reports that Joseph Young d/b/a Manor Roofing is a sole proprietorship with zero employees.

Judge Michael J. Barrasse entered Eugene Egan, doing business as Valley View Estates Mobile Home Park in Jermyn, into the Accelerated Rehabilitative Disposition Program for first-time offenders on Dec. 30, 2008, in Lackawanna County Court of Common Pleas. Egan was placed on probation for six months and ordered to pay the costs of prosecution. The Bureau’s Compliance Unit reports that Valley View Estates Mobile Home Park is no longer operating with employees.

Judge Maria L. Dantos entered John Joseph Matyas III, owner of Bethlehem Auto Sales, in Bethlehem, into the Accelerated Rehabilitative Disposition Program for first-time offenders on Oct. 1, 2008, in the Lehigh County Court of Common Pleas. Matyas was placed on probation for one year, ordered to pay the costs of prosecution and reimburse the Bureau of Worker’s Compensation $171 for costs expended to secure unemployment compensation documents. The Bureau’s Compliance Unit reports that Bethlehem Auto Sales is now in compliance with the Pennsylvania Workers’ Compensation Law.

Nguyen Ly, owner of Global Resources Staffing Inc., in Philadelphia, was sentenced on April 9, 2008, by Municipal Court Judge Wendy L. Pew. Nguyen Ly pled guilty to one misdemeanor count of the third degree, was sentenced to one year probation and was fined $500 plus court costs. The Bureau’s Compliance Unit reports that Global Resources Staffing Inc. is no longer in business.

Johnson Truck Line Inc. and its owner Stacy Johnson, in Tioga, each pled guilty to one felony count of the third degree on Oct. 20, 2008, in the Tioga County Court of Common Pleas for failing to insure its workers’ compensation liability. Judge Robert E. Dalton Jr. sentenced Johnson to seven years of probation, with terms including payment of restitution in the amount of $81,092 to an injured employee and payment of prosecution costs. Johnson Truck Line Inc. was also sentenced to pay the restitution amount and costs of prosecution. The Bureau’s Compliance Unit reports that Johnson Truck Line Inc. is no longer in business.

 

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