WILLIAMSON, W.Va. — A scheme which bilked the state
and federal government and Brickstreet Insurance out of millions of dollars
will send at least three people to prison and more could be coming.
Jerome Russell, 50, of Williamson , W.Va. and
Frelin Workman, 58, of Belfry, Ky. Chapmanville , W.Va.
According to U.S. Attorney Booth
Goodwin Aracoma officials arranged for numerous transactions at the Bank of
Mingo Williamson Branch in which they withdrew cash in amounts just under the
limit which required federal reporting. The cash became the payroll for Aracoma
employees and helped the company avoid Millions of dollars in taxes and
withholdings.
“It should have triggered reporting
requirements for the bank,” said U.S. Attorney for the Southern District of
West Virginia Booth Goodwin. “That did not occur.”
So far, nobody connected to the
bank has been named in the investigation and Goodwin isn’t saying much about
whether the probe is looking into any bank employees who may have been
complicit in the scheme.
“They were able to funnel millions
of dollars in cash out of the bank and use that cash to pay under the table
cash payments to employees to avoid taxes and Social Security,” Goodwin said.
“As well as bribe an official with Brickstreet Mutual Insurance Company to keep
their workers comp premiums low.”
A federal information named Sargent
as the Brickstreet official who accepted the bribe. He faces 25 years in
prison and a half million dollar fine.
The scheme would entail individuals
showing up at a teller window and being presented with a cashier’s check. The
check was endorsed and the individual handed precounted cash. Federal
investigators said many times the checks exceeded Aracoma’s 10,000 dollar line
of credit, but no currency transaction reports were filed by the bank as
required by law.
“Our investigation is ongoing down
there in Mingo County
