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January 30, 2025   The head of a Jacksonville painting business has pleaded guilty to being part of a workman’s comp scam that prosecutors said cost the government millions in uncollected taxes and helped hide illegal immigrants on jobsites.   Dorothy Thompson-Avila, 44, was the last to plead guilty out of three people indicted together in May 2023 on charges of wire fraud conspiracy and conspiring to defraud the federal government.   She entered her plea last week, days after a co-defendant, Honduran native Jose Molina-Herrera, was sentenced to 27 months in prison for his part in the fraud, which provided bogus workman’s comp insurance to contractors in places including Duval, Clay and St. Johns counties. State corporation records identify Thompson-Avila as manager of DT Eastern Painters LLC in Jacksonville, but that company is not among the several businesses named in the fraud case.   Florida requires contractors to have workman’s comp coverage for their crews, but prosecutors said the scam used shell companies to buy insurance, then rent that insurance to far more contractors than the policy could cover.   Read more

January 27, 2025   Serious injuries and fatalities involving ladders decreased 21 percentage points over a recent five-year period, according to the results of a recent survey.   The survey was emailed to ladder safety training managers and professions this past spring by the American Ladder Institute’s Education and Outreach Committee. The 35-question survey – the fourth from ALI since 2016 – covered topics such as frequency of ladder citations, types of ladder citations and preferred methods of ladder safety education. A total of 350 responses were received.   Around 18% of the respondents reported experiencing an incident involving a ladder – the same percentage as in the 2020 survey. Of those incidents, roughly 33% resulted in a SIF – down from 54% in 2020.   The respondents were also asked about what type of incidents have occurred in the past two years. Among them: “ladder was set up incorrectly” (33%) and “the wrong ladder was used for the job” (30%).   Other findings: Nearly 9 out of 10 of the respondents didn’t know that OSHA’s regulation on ladders (1926.1053) was No. 3 on the agency’s Top 10 list of most frequently cited standards for fiscal year 2023. Approximately 3 out of 4 hadn’t receive a ladder-related OSHA citation in the previous 12 months. Nearly half of the respondents’ organizations have mandated ladder safety training for at least seven years. “ALI believes that continuous safety training is the best way to empower workers to make the right decisions when using ladders,” the institute says in a press release.   March is National Ladder Safety Month. ALI has a four-week educational outreach program that coincides with the observation.

January 22, 2025   JACKSONVILLE, Fla. — A Mexican national was sentenced to more than two years in prison and ordered to pay more than $3.5 million in restitution to the Internal Revenue Service (IRS) for conspiracy to commit wire fraud and conspiracy to defraud the United States following a Homeland Security Investigations (HSI) Jacksonville investigation.   Jose Molina-Herrera, 27, of Honduras, was sentenced to 27 months in federal prison. The court also ordered Molina-Herrera to forfeit $867,005, which are proceeds of the wire fraud offense. In addition, Molina-Herrera was ordered to pay a total of $3,558,579.42 in restitution to the IRS. Molina-Herrera entered a guilty plea on Nov. 1, 2024.   Read more

by Louise Esola  Jan 21, 2025           The Occupational Safety and Health Administration fined a Vero Beach, Florida-based drainpipe cleaning and maintenance company $16,131 for alleged safety lapses at a worksite where a worker was killed in June 2024.   The agency said Thursday its investigation of Southeast Services of the Treasure Coast Inc. found that during the cleaning of a drainpipe at a Port St. Lucie, Florida, worksite, the pipe’s pressurized plug became over-inflated, causing an explosion so powerful that it ejected one worker 15 feet from the storm drain, resulting in his death.   OSHA cited the company for a “serious” violation for failing to develop and implement procedures and train workers on how to install and remove pneumatic pipe plugs safely. This failure put workers at risk of being struck by dangerous equipment, the agency said.

Tuesday, January 21, 2025 Jacksonville, Florida – Senior U.S. District Judge Brian J. Davis today sentenced Jose Molina-Herrera (27, Honduras) to 27 months in federal prison for conspiracy to commit wire fraud and conspiracy to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS).    The court also ordered Molina-Herrera to forfeit $867,005, which are proceeds of the wire fraud offense. In addition, Molina-Herrera was ordered to pay $3,558,579.42 in restitution to the IRS. Molina-Herrera entered a guilty plea on November 1, 2024. According to court documents, between 2019 and 2020, Molina-Herrera conspired with others to facilitate the payment of construction workers “off the books” to avoid paying premiums for workers’ compensation insurance and payroll taxes.   Construction contractors and subcontractors entered arrangements with the conspirators, through which All National Remodeling LLC – a shell company formed by Molina-Herrera – facilitated both the distribution of proof of insurance and the payment of workers with cash. In exchange for 6% to 8% of the contractors’ and subcontractors’ payroll, Molina-Herrera and others caused the distribution of certificates of liability insurance in the name of All National Remodeling, which contractors and subcontractors then used as nominal proof that workers were supposedly insured.   In reality, All National Remodeling’s insurance policy was issued based on a fraudulent application that never disclosed that contractors and subcontractors would be employing workers who were ostensibly insured under the shell company’s barebones insurance policy. As a result of contractors and subcontractors using All National Remodeling’s proof of insurance, but never paying any insurance premiums, the insurance company was defrauded more than $2.2 million. . Molina-Herrera and others also facilitated the deposit of checks into the shell company’s bank accounts, as well as the withdrawal of cash to be paid to workers – all without withholding, or paying over, payroll taxes to the IRS. Through these arrangements with the conspirators, the construction contractors and subcontractors could disclaim responsibility for withholding and paying payroll taxes to the IRS or ensuring that the workers were legally authorized to work in the United States. By facilitating payments to workers of over $14 million without payroll taxes being withheld, Molina-Herrera and his co-conspirators caused the U.S. Treasury to lose more than $3.5 million in tax receipts. One of Molina-Herrera’s co-conspirators, Oscar Molina-Avila, was previously sentenced to 52 months’ imprisonment for his role in the scheme. “Using shell companies to pay workers under the table is not only illegal, it gives an unfair competitive advantage that businesses who do things the right way can’t match,” said Ron Loecker, Special Agent in Charge of IRS-Criminal Investigation’s Tampa Field Office.  “We will continue to investigate these schemes to ensure compliance with the law and return competitive balance to the industry.” “Wire fraud and the facilitation of “off the books” payments not only undermine the integrity of our legal and economic systems but also supports unlawful employment activities.” said Homeland Security Investigations (HSI) Jacksonville Assistant Special Agent in Charge Tim Hemker. “Homeland Security Investigations, alongside our partners at the Internal revenue Service – Criminal Investigations and the Florida Department of Financial Services – Bureau of Insurance Fraud, is committed to holding those who facilitate these complex fraud schemes accountable for their actions.”          This case was investigated by the Internal Revenue Service—Criminal Investigation, Homeland Security Investigations, and the Florida Department of Financial Services – Bureau of Insurance Fraud. It was prosecuted by Assistant United States Attorney Michael J. Coolican.

Washington — OSHA has extended for another year its National Emphasis Program on outdoor and indoor heat-related hazards.   The program was set to expire April 8.   “OSHA’s review of this NEP shows success in identifying and targeting industries with employee exposures to heat-related hazards, while removing nearly 1,400 employees from these hazards,” states an agency notice published Jan. 16.   Since initiating the NEP in April 2022, OSHA says it has conducted around 7,000 heat-related inspections and issued 60 citations for violations of the General Duty Clause – along with nearly 1,400 hazard alert letters.   By contrast, the agency completed around 200 annual heat-related inspections from 2015 to 2020. That included approximately 15 fatality inspections each year.   Under the NEP, OSHA conducts heat-related inspections of more than 70 “high-risk” industries if the National Weather Service issues a heat warning or advisory for a local area. The agency also engages in outreach and provides technical assistance when the heat index reaches at least 80° F.   Additionally, OSHA compliance safety and health officers look for heat hazards during all inspections.

January 16, 2025   Mosaic Fertilizer LLC faces 2 serious safety violations   MULBERRY, FL – A U.S. Department of Labor investigation determined a Mulberry phosphatic fertilizer manufacturer failed to follow required safety standards, leading to the tragic loss of a 29-year-old process operator in July 2024.   Investigators with the department’s Occupational Safety and Health Administration found that Mosaic Fertilizer LLC did not ensure the rotating portion of the east and west industrial ribbon blenders – a device that mixes the finished fertilizer with a coating oil – had the proper guarding in place or secured. The worker, who was collecting a sample for analysis, suffered fatal injuries after falling into the unguarded ribbon blender.   “This unfortunate incident could have been prevented had Mosaic Fertilizer LLC ensured all machines were secured and guarded,” said OSHA Area Director Danelle Jindra in Tampa, Florida. “In this case, the employer failed to protect workers as the law requires. No employee should lose their life because an employer neglects basic safety measures.”   OSHA issued the employer two serious violations and proposed $30,649 in penalties.   Mosaic Fertilizer LLC is based in Mulberry and has 600 employees at the site. It employs 2,500 workers nationwide.   The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA’s area director, or contest the findings before the independent Occupational Safety and Health Review Commission

January 16, 2025   Southeast Services of the Treasure Coast failed to identify pressurized plug as hazard   PORT ST. LUCIE, FL – A U.S. Department of Labor investigation has found that a drainpipe cleaning and maintenance company could have prevented an explosion at a Port Saint Lucie worksite in June 2024 that claimed a 24-year-old worker's life, by implementing proper safety measures to address the hazards of inflatable pipe plugs.   An investigation by the department's Occupational Safety and Health Administration revealed that on June 8, 2024, two employees of Southeast Services of the Treasure Coast Inc. were cleaning a drainpipe at the intersection of Southwest Becker Road and Southwest Village Parkway. During the process, the pipe's pressurized plug became over-inflated, causing an explosion so powerful that it ejected one worker 15 feet from the storm drain, resulting in fatal injuries.   OSHA cited the Vero Beach-based employer for a serious violation for failing to develop and implement procedures and train workers on how to install and remove pneumatic pipe plugs safely. This failure put workers at risk of being struck by dangerous equipment.   "Pressurized equipment poses significant danger, and employers must put safeguards in place and take all necessary precautions to protect workers from these hazards," said OSHA Area Director Condell Eastmond in Fort Lauderdale, Florida. "If employers ignore critical safety measures, the consequences can be devastating, leaving an unfillable void in the lives of the families impacted by such tragedies."   OSHA has assessed the employer $16,131 in proposed penalties.   Southeast Services of the Treasure Coast Inc. is an underground utility company that specializes in the maintenance of sanitary sewer and storm water. The company employs approximately 30 workers and serves the east coast of Florida, including Brevard, Indian River, St. Lucie and Martin counties.   The company has 15 business days from receipt of its citations and penalties to comply, request an informal conference with OSHA, or contest the findings before the independent Occupational Safety and Health Review Commission.