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More Trouble for Owner of Closed Printers?

June 11, 2010
ROCHESTER, NY—Closing two of his printing companies may be among the least of the problems for Olanrewaju Olotu. The owner of two now-defunct companies—Printing Methods, based here, and Albion Color of Albion, NY—could face charges of insurance fraud and grand larceny, according to a report by YNN Rochester.

Olotu is on the hook for more than $300,000, which the state Labor Department is seeking in back pay for the workers, along with penalties. Now, according to YNN, the state Insurance Frauds Bureau has begun a criminal investigation looking into the complaints of fraud and theft.

The health care company that provided insurance to Printing Methods and Albion Color—MVP Health Care—said that the two firms allowed the employees' coverage to lapse in April and May and still owe $114,000 in premiums. Some of the premiums were withheld from employee paychecks, according to YNN.

In addition, the companies still owe in excess of $455,000 on a Small Business Association (SBA) loan to finance a plant expansion and $166,000 on a loan for Albion Color, YNN reported.
 

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