Staffing Firm Admits to Shifting Payroll to Cut Workers Comp Premiums

The president of DES Staffing Services in Des Moines, Iowa pleaded guilty in federal court to one count of wire fraud in connection with the defrauding of workers compensation insurers.

Source: Source: IFAWebnews - Bob Graham | Published on September 28, 2011

Dinesh Sethi, 39, who lives in Ankeny, Iowa, and president of the staffin firm, admitted that he and his director of finance, Randy Stringer, shifted payroll from high premium job classifications to lower premium job classifications to fraudulently reduce workers compensation insurance premiums, according to the FBI and United States Attorney Nicholas A Klinefeldt.?At sentencing, Sethi could face up to 20 years in prison and/or up to $250,000 in fines.

Sentencing is scheduled for Dec. 19 before U.S. District Court Judge James E Gritzner. Sethi remains on pretrial release pending sentencing.