Ankeny Man Pleads Guilty to Wire Fraud Involving Workers Compensation
| U.S. Attorney’s Office September 23, 2011 |
DES MOINES, IA—On September 22, 2011, Dinesh Sethi, age 39, pled guilty in federal district court to one count of wire fraud in connection with defrauding insurance companies out of workers compensation insurance premiums that were due and owing, announced United States Attorney Nicholas A. Klinefeldt. Sethi, president of DES Staffing Services, admitted he and his director of finance, Randy Stringer, shifted payroll from high premium job classifications to lower premium job classifications to fraudulently reduce workers compensation insurance premiums.
Sethi faces a maximum term of imprisonment of 20 years, a fine of not more than $250,000 or both, along with restitution. The Honorable James E. Gritzner, United States District Court judge set sentencing for December 19, 2011 at 1:30 p.m. Sethi remains on pretrial release pending sentencing.
This case was investigated by the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.