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Monday, September 16, 2013

State files charges against city business

Employer fraud results in criminal charges.Today's post was shared by WCBlog and comes from

The state Department of Labor & Industry on Friday filed criminal charges against a Wilkes-Barre business, alleging it failed to maintain worker's compensation insurance.
Kus Tire Inc. at 10 Carey Ave. is charged with 100 felony counts of failing to procure worker's compensation insurance, court records say.

A message left seeking comment at Kus Tire was not immediately returned.

According to a criminal complaint, the business, headed by Bernard Kusakavitch, failed to have the insurance for 100 days - from Sept. 10, 2008, through Sept. 17, 2008, and again from Oct. 1, 2011, through Dec. 31, 2011.

As a self-insured employer, the business was not exempt from possessing the coverage, the charges say.

The complaint said an employee, Walter Booth Jr., was injured Sept. 12, 2008, and subsequently petitioned for benefits from the Uninsured Employers Guaranty Fund, which provides benefits to injured employees of uninsured employers.

According to the complaint, Workers' Compensation Judge Joseph B. Sebastianelli awarded Booth benefits on May 31, 2011.

Investigators filed a summons against the business Friday. The matter is scheduled for a preliminary hearing before Magisterial District Judge Rick Cronauer at 9 a.m. Oct. 31.

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