AG’s office to investigate allegations of insurance fraud at Snyder County businesses: DA

[ad_1]

MIDDLEBURG – The state attorney general’s office has agreed to investigate insurance fraud complaints involving owners of three Snyder County businesses with financial problems.

District Attorney Michael Piecuch said on Thursday that the AG’s office also accepted his referral of similar complaints about the former Wood-Mode Inc.

The referrals were made because the AG’s office has a section dedicated to insurance fraud and has the resources to investigate such allegations, he explained.

The allegations are that the money was withheld from employees but then diverted for other uses, Piecuch said. He doesn’t know how much money might be involved, he said.

Workers at the old Wood-Mode said they received medical bills that should have been covered by insurance, he said.

The old Wood-Mode has no connection with the current Wood-Mode which was established in August 2019 as a new company by Mifflinburg businessman Bill French.

Similar allegations of insurance fraud have been received regarding three companies owned by Maurice Brubaker and his wife Deb, Piecuch said.

They are William Penn Cabinetry in Freeburg, Stanley Woodworking in Middleburg and Wood-Metal in Selinsgrove, all in Snyder County.

Last Friday, Selinsgrove Institutional Casework, which operates as Wood Metal Industries, filed for Chapter 11 bankruptcy.

The 20 largest unsecured claims according to a filing with the US Intermediate District Bankruptcy Court are over $ 2.4 million.

The largest is $ 1.3 million owed to Pension Benefit Guaranty Corp. from Washington, DC

The record also indicates that there are more than 50 creditors and that the company has assets estimated to be worth between $ 1 million and $ 10 million.

Attempts to contact Brubaker, the owner of a tax and accounting firm in Lewisburg, were unsuccessful.

He considered buying the old Wood-Mode, but instead purchased what was then a closed-ended manufacturer of custom wood cabinetry in Snyder County. William Penn Cabinetry, which opened in 2020, obtained a $ 500,000 loan from the SEDA Council of Governments for its working capital.

Brubaker blamed supply chain issues and non-payment of customers as reasons for the plant’s October shutdown and 80 workers being laid off, but employees argue mismanagement was the problem .

Several Stanley Woodworking employees the Brubakers bought in March 2020 have filed civil actions for benefits they claim they did not receive.

Complaints have also been filed with the state Department of Labor and Industry and the Pennsylvania Insurance Commission.

The owners of the William Penn and Wood Metal properties have started eviction proceedings for non-payment of rent.

Deb Burkhart is in trouble herself, after being accused of writing a bad check for $ 700. Its preliminary hearing is scheduled for February 17.

Following:

Ex-Pa condemned. the soldier loses his pension but is entitled to reimbursement after the fine, the restitution is paid

Pennsylvania businessman admits he paid no payroll taxes, will have to pay IRS $ 1 million

[ad_2]