CINCINNATI - The owner of a Cincinnati-based construction company pleaded guilty to fraudulently obtaining employee safety training certificates and embezzling from the company’s pension benefit program. Ron Craig Estes, owner of R&R Steel, LLC, pleaded guilty before U.S. District Judge Timothy S. Black to one count of mail fraud and one count of theft from an employee benefit plan.
According to the plea agreement, Estes devised a scheme in 2015 to skirt Occupational Safety and Health Administration (OSHA) requirements by buying fake employee training certifications in order to compete for a contract to provide steel installation and other work for the 8th and Sycamore project in Cincinnati. Estes paid $800 for 10 fake training certificates to avoid the costs and time associated with ensuring that all of the company’s employees had completed appropriate safety training. R&R received the $450,000 contract to do the work.
Court documents also say Estes embezzled between $15,000 and $40,000 from the company’s 401(k) retirement benefit plan established for the workers. Estes completed distribution forms for workers who had left the company and forged the participant’s signature on the distribution checks in order to cash the checks for his own benefit and use.
In addition to entering his guilty pleas before Judge Black on Jan. 28, Estes agreed to a money judgement of $25,000, and to pay restitution to any victims as determined by the court at sentencing. Mail fraud is punishable by up to 20 years in prison and embezzlement has a statutory maximum sentence of five years. The court will determine a sentence based on federal sentencing guidelines which take into account the amount of loss, the number of victims and the victims’ vulnerability.
Sentencing has been set for May 13th. Victims are encouraged to contact Victim Witness Specialist Krista Zeller, at Toll Free: 888-283-5715 or Krista.Zeller@usdoj.gov, by March 3 for more information about submitting claims for restitution.
U.S. Attorney DeVillers and the U.S. Department of Labor Office of Inspector General and Employee Benefits Security Administration announced the plea. Assistant United States Attorney Ebunoluwa Taiwo is representing the United States in this case.
Source: U.S. Department of Justice, Office of the United States Attorneys
