Magnifying Glass
Back to Sponsored Content

Painting Company Defrauded Workers’ Comp System

15 Apr, 2009 WorkersCompensation.com

                               
Tumwater, WA (CompNewsNetwork) - The owner of a Spokane residential painting company will pay $212,000 in back premiums and penalties in a case involving false reporting and cash payment of wages to avoid workers' compensation premiums.

In Spokane District Court yesterday, Dale G. Koohns of Koohns Painting pleaded guilty to two counts of third-degree theft. Koohns will serve 30 days on electronic home monitoring. The guilty pleas were part of a settlement that includes an immediate payment of $55,000 to the Department of Labor & Industries (L&I) and monthly payments of $700 with the balance to be paid in full within five years.

"We received valuable help on this case from honest contractors who got tired of being underbid," said Carl Hammersburg, manager of L&I's Fraud Prevention and Compliance Program. "This settlement helps level the playing field for them."

To guarantee repayment of the debt, Koohns agreed to liens on personal assets. If the balance of $212,000 is not paid in full within five years, penalties will double and interest will accrue until paid in full.

In return for the guilty pleas and financial settlement, the Attorney General's Office agreed to drop six felony counts. The class C felonies were for intentional false reporting during six quarters in 2005–2006. Each count was punishable by up to five years in prison.

The case against the Dale Koohns is part of L&I's efforts to find unregistered contractors and registered construction companies that purposefully underpay their insurance premiums. The state's underground economy task force estimates that in 2006 participants in the underground construction economy cost Washington state $113 million in unpaid taxes and premiums.

Susan DanPullo of the Attorney General's Office represented L&I in the Koohns settlement. DanPullo was hired in 2006 through new funding from L&I to increase criminal fraud prosecutions.

    • Read Also

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]

    Read More

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]
    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    PhysNet Achieves Fifth Consecutive Year of SOC 2 Type II Certification

    Jacksonville, FL, June 3, 2024 – PhysNet proudly announces its attainment of SOC 2 Type II compliance for the fifth consecutive year, reinforcing its commitment to providing enterprise-level security for customer data within its cloud-based […]
    WorkCompCollege.com Welcomes Alistair Ienstein as New Academic Innovator 

    June 20, 2024 – WorkCompCollege.com is thrilled to announce the appointment of Alistair Ienstein as its new Academic Innovator. Alistair, a unique and revolutionary AI presence, is poised to transform the learning experience for students […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.