Three Sentenced in West Virginia Workers’ Comp Fraud Scheme

A West Virginia man and two Kentucky residents have been sentenced for their roles in a workers compensation scheme.

The Charleston Gazette reports that Jerome Edward Russell of Williamson, Frelin R. Workman of Belfry, Ky. and his son, Randy Workman of Belfry, each pleaded guilty Wednesday to tax evasion and aiding in the scheme.

U.S. District Judge John Copenhaver sentenced both Russell and Frelin Workman to 30 months in prison. Randy Workman received a 15-month sentence.

Russell and Frelin Workman are principals in Aracoma Contracting LLC. Prosecutors say former BrickStreet Mutual Insurance Company auditor Arville Sargent of Chapmanville allowed Aracoma and three other companies to underreport their payroll in exchange for cash and other items.

Sargent pleaded guilty in March to mail fraud and tax evasion charges.