Employers are always looking for ways to reduce their workers’ compensation costs. Maybe making off-the-books payments to a state official isn’t the best way to go about it.
James McDonnell, an audit supervisor for the State Workers’ Insurance Fund in Scranton, has been charged with five counts of bribery after allegedly accepting more than $80,000 from Pennsylvania businesses. According to prosecutors, McDonnell told business owners insured by the fund that he would reduce their workers’ comp premiums in exchange for the cash kickbacks.
The fund is administered by the Pennsylvania Department of Labor and Industry.
Prosecutors claim that on 15 occasions, McDonnell issued checks to fund-insured employers with no supporting documentation.
No word yet from prosecutors on the fate awaiting businesses that allegedly made payments to McDonnell.
Advice: When a government official asks for cash in exchange for favors, there’s really only one way to respond: Call your attorney ASAP.