Nearly 30 Indiana Carpenters Sentenced for $500K+ Benefit Fraud

The defendants came into the courtroom in large volume, but the judge was more than up to the task. On November 19, fully 27 members of local unions affiliated with the Indiana/Kentucky/Ohio Regional Council of the United Association of Carpenters and Joiners were sentenced in U.S. District Court for the Northern District of Indiana for defrauding the council’s health care program out of a combined $531,422.68. Though court records do not indicate any prison sentences, the defendants, all of them Indiana residents, were ordered to pay restitution. The actions follow a joint investigation by the U.S. Labor Department’s Office of Inspector General and Employee Benefits Security Administration, assisted by Indiana state officials.

According to prosecutors, each of the accused union members had filed fake claims for medical expenses with the Greenwood, Ind.-based council. One of them, Luka Kljajic, who pleaded guilty this July, during 2012-14 had coached various … Read More ➡

Carpenters Member in Indiana Pleads Guilty to Embezzlement

At the Indiana/Kentucky/Ohio Regional Council of Carpenters (IKORCC), theft seems to be a way of doing business. And for Luka Kljajic, business was good until he was caught. On July 25, Kljajic, a member of the Greenwood, Ind.-based council, pleaded guilty in U.S. District Court for the Northern District of Indiana to submitting nearly $50,000 in false claims to a union-sponsored benefit plan and to assisting other union members in submitting false claims to the plan. Sentencing is scheduled for November 19. The plea follows an investigation by the U.S. Labor Department’s Office of Inspector General and Employee Benefits Security Administration (EBSA).

According to prosecutors, Kljajic during 2012-14 submitted fake reimbursement requests for medical plan expenses and helped other union members with similar deceptions. In the case of the latter offenses, he would receive fees ranging from $100 to $500 per claim. In his written plea agreement, he admitted to … Read More ➡