CHARLESTON, W.Va. (AP) - An employee leasing firm in Williamson will pay more than $4 million in restitution after admitting to a cash structuring scheme.
U.S. Attorney Booth Goodwin said Tuesday that Aracoma Contracting LLC also was placed on three years’ probation and agreed to forfeit an additional $405,000 in the scheme that involved more than $2 million in cash withdrawals from the Bank of Mingo in Williamson.
Structuring involves transactions of $10,000 or less to avoid federal reporting requirements.
A federal investigation determined Aracoma used the cash to meet its payroll, avoid paying employment taxes and bribe a former workers compensation auditor.
Auditor Arville Sargent was sentenced last year to six years in prison. Aracoma principals Jerome Edward Russell of Williamson and Frelin R. Workman of Belfry, Ky., each received 30-month sentences.
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