Two Whitesburg insurance agents and a customer services representative were sentenced to probation, fines and community service after they pleaded guilty to felony charges of helping a client defraud a workers' compensation insurance carrier.
Thomas J. Childers, 60, of Hazard, owner of CS&W Insurance Services Inc.; Karen Lynetta Fox-Burns, 56, of Whitesburg, a licensed agent at the firm; and Shannon Ranee Hogg, a CS&W customer services representative and Fox-Burns' daughter, each pleaded guilty to a count of misprision of a felony April 30 in U.S. District Court in Lexington. The three helped CS&W clients John and Tena Pennington receive lower workers' compensation premiums for John Pennington's company by misrepresenting the number of employees and the amount of payroll, according to court documents.
Childers, Fox-Burns and Hogg each were put on probation for two years, sentenced to 100 hours of community service and fined $100 during sentencing May 8. Childers also was fined an additional $10,000.
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