Insurance fraud allegations at Snyder County businesses will be investigated by the Attorney General’s office, according to the DA.
MIDDLEBURG – The state attorney general’s office has agreed to look into insurance fraud allegations involving the owners of three Snyder County businesses who are having financial difficulties.
District Attorney Michael Piecuch said Thursday that his referrals of similar complaints about the former Wood-Mode Inc. have been accepted by the AG’s office.
According to him, the referrals were made because the AG’s office has a dedicated insurance fraud section with the resources to investigate such allegations.
According to Piecuch, the allegations are that money was taken from employees and then used for other purposes.
He claims he has no idea how much money is at stake.
According to him, former Wood-Mode employees reported receiving medical bills that should have been covered by insurance.
The old Wood-Mode is unrelated to the current Wood-Mode, which was founded by Mifflinburg businessman Bill French in August 2019 as a new company.
According to Piecuch, similar insurance fraud allegations have been made against three companies owned by Maurice Brubaker and his wife Deb.
In Snyder County, they are William Penn Cabinetry in Freeburg, Stanley Woodworking in Middleburg, and Wood-Metal in Selinsgrove.
Wood Metal Industries, a division of Selinsgrove Institutional Casework, filed for Chapter 11 bankruptcy on Friday.
According to a filing in the United States’ Middle District Bankruptcy Court, the 20 largest unsecured claims total more than (dollar)2.4 million.
The largest debt is (dollar)1.3 million owed to Washington, DC-based Pension Benefit Guaranty Corp.
The company has assets worth between (dollar)1 million and (dollar)10 million, according to the filing, and there are more than 50 creditors.
Brubaker, the owner of a Lewisburg tax and accounting firm, could not be reached.
He considered purchasing the old Wood-Mode, but instead chose to purchase a Snyder County custom wood cabinet manufacturer that was then closed.
The SEDA Council of Governments provided a (dollar)500,000 working capital loan to William Penn Cabinetry, which is set to open in 2020.
Brubaker cited supply chain issues and customer non-payment as reasons for closing the plant and furloughing 80 workers in October, but employees say the problem was mismanagement.
A number of employees of Stanley Woodworking, which the Brubakers purchased in March 2020, have been…
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