PaintSquare.com
      | Connect Follow us on Twitter Like us on Facebook
About | Subscribe | Advertise
  

 

Download our free Wastewater Treatment Coating Systems eResource Book

Paint and Coatings Industry News

Main News Page


Construction Owner Admits $450K Theft

Monday, December 10, 2012

More items for Program/Project Management

Comment | More

The former owner of two defunct New Jersey construction companies is facing eight years in prison after admitting to insurance and tax fraud that netted him more than $450,000.

Prosecutors said Herlindo Garcia-Merlos, 49, whose last known address was in Trenton, lied to his workers’ compensation carrier, failed to file five years' worth of tax returns, and underreported his own wages on tax returns.

Garcia-Merlos pleaded guilty Nov. 28 to a criminal accusation charging him with two counts of second-degree theft by deception before Superior Court Judge Gerald Council in Mercer County. 

Herlindo Garcia-Merlos

Herlindo Garcia-Merlos, 49, faces an eight-year prison sentence.

Sentencing is set for Jan. 23. Under the plea agreement, the state will recommend that Garcia-Merlos be sentenced to eight years in state prison. In addition, the state is seeking $315,680 in restitution on behalf of New Jersey Manufacturers Insurance Group and $135,462 on behalf of the New Jersey Department of Treasury.

Insurance Fraud

“This defendant was responsible for making sure that he had adequate and lawful workers’ compensation coverage for his companies,” said Acting Insurance Fraud Prosecutor Ronald Chillemi.

“By providing misinformation to his workers’ compensation carrier, he not only failed in this responsibility but also defrauded an insurance company out of hundreds of thousands of dollars. The cost of such fraud is passed on to consumers through increased premiums."

Garcia-Merlos was president of the now-defunct Orients Construction Company Inc., located in Trenton. In March 2009, Garcia-Merlos ceased doing business as Orients and began doing business as Melrose Construction Inc. in Trenton.

In pleading guilty, Garcia-Merlos admitted that, between February 2007 and April 2010, he provided "false and misleading information" to NJM Insurance Group, according to a release from the New Jersey Attorney General's Office.

Ronald Chillemi

Prosecutor Ronald Chillemi said Garcia-Merlos defrauded his insurer out of hundreds of thousands of dollars.

"The investigation determined that the type of services rendered by Orients, as well as the amount of payroll during the specified policy periods, were not true," the AG's office said. The fraud allowed Garcia-Merlos to avoid paying $315,680 in insurance premiums.

Tax Dodger

Garcia-Merlos also pleaded guilty to stealing more than $135,462 by failing to file tax returns for his companies.  Authorities said he did not file returns "for Orients and/or Melrose" Construction in 2006, 2007, 2008, 2009 and 2010. During the same years, he underreported his own wages on his individual tax returns, authorities said.

Deputy Attorney General Cheryl Maccaroni and Detective Natalie L. Brotherston coordinated the investigation. 

Chillemi noted that some important insurance fraud cases have started with anonymous tips. Tips may be reported to the state's toll-free hotline at 1-877-55-FRAUD, or visiting www.NJInsurancefraud.org. State regulations allow for payment of a reward to tipsters whose information leads to an arrest, prosecution and conviction for insurance fraud.

   

Tagged categories: Enforcement; Government; Insurance; Laws and litigation; Taxes; Workers

Comment Join the Conversation:

Sign in to our community to add your comments.

SAFE Systems, Inc.
Portable Dust Collectors for Tough Environments

Trailer and skid-mounted models in numerous sizes, powered by electric and/or diesel. Sloped roofs, multiple dust inlets, high static, dampered fans. Lockable power & drive compartments.


DeFelsko Corporation
PosiTector Inspection Kits

PosiTector 6000 Coating Thickness Gage easily converts to a surface profile gage, dew point meter or ultrasonic wall thickness gage with a simple probe change.


SSPC: The Society for Protective Coatings
http://www.sspc.org/

Join SSPC and Enhance
Your Career !


Absolute Equipment/Grand Rental Station
Portable Power from Absolute Equipment

•Compressors
•Lighting Systems
•Generators
•Light Compaction
Sales • Rental • Service
Call 1-866-931-6655
Over a century of
providing excellence.


KTA-Tator, Inc. - Corporate Office
KTA Analyzes
Coating Failures

• Field Diagnosis
• Lab Diagnosis
• Determination of Cause
• Recommendations
www.kta.com
800-245-6379


ABKaelin, LLC
Quality is our bottom line

Services include:
• Environmental, Health &
  Safety
• Contractor QP Certification
• Quality Assurance Programs
  and Auditing
• SSPC C3/C5 and other
  Training
• Coatings
• Design/Construction
See our website at abkaelin.com or contact us today abkaelin@comcast.net


Trelawny Surface Preparation Technology
Surface Preparation Equipment

Manufacturer of needle scalers, grinders, scarifiers and scabblers. Pneumatic tools for Marine and Construction. US distributor CS Unitec: 800-700-5919


CHLOR*RID International Inc.
Free Webinar

Learn about soluble salts, along with a discussion on allowable levels.
More information at
www.chlor-rid.com,

800-422-3217


Elcometer, Inc.
Durability & Design meet
Performance & Reliability

Elcometer 319 Dewpoint Meter
View the technical data on the Elcometer Dewpoint meter.

 
 
 
Technology Publishing

The Technology Publishing Network

The Journal of Protective Coatings & Linings (JPCL) PaintSquare
Durability + Design Paint BidTracker

 
EXPLORE:      JPCL   |   PaintSquare News   |   Interact   |   Buying Guides   |   Webinars   |   Resources   |   Classifieds
REGISTER AND SUBSCRIBE:      Free PaintSquare Registration   |   Subscribe to JPCL   |   Subscribe to PaintSquare News
MORE:      About PaintSquare.com   |   Privacy policy   |   Terms & conditions   |   Site Map   |   Search   |   Contact Us
 

© Copyright 2000-2015, Technology Publishing / PaintSquare, All rights reserved
2100 Wharton Street, Suite 310, Pittsburgh PA 15203-1951; Tel 1-412-431-8300; Fax 1-412-431-5428; E-mail webmaster@paintsquare.com