The chief operating officer of a Jackson firm has been fined and ordered to pay restitution for embezzling funds from the employees’ healthcare benefit program.
U.S. Magistrate Judge Kendall J. Newman on Wednesday ordered 42-year-old Cory Kasinger of Jackson to pay a $20,000 fine and $37,320 in victim restitution, according to a U.S. Attorney’s Office news release. Kasinger pleaded guilty to charges in federal court in Sacramento in October.
According to court documents, between March 1 and May 1, 2010, Kasinger, the chief operating officer of Mariah Resources Inc., withheld approximately $19,628 from the paychecks of the company’s employees, which was to be applied toward the premiums for their healthcare benefit program. Instead of paying the premiums, Kasinger returned these funds to the company’s general fund. As a result, the employees’ healthcare benefit program was terminated.
The termination was retroactive to March 1, 2010, which caused Mariah Resources employees to incur $16,569 in out-of-pocket medical costs. In addition, when the insurer sent $782 to Mariah Resources to reimburse former employees who were paying into the company’s COBRA program, Kasinger put the money into the general fund and did not pass it back to the former employees as he should have, authorities said.
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The case resulted from an investigation by the Department of Labor, Employee Benefits Security Administration.