In December a contractor applied for a building permit from the city and submitted a document indicating he had no employees and was not required to purchase workers’ compensation insurance.
The investigation determined the contractor actually had several employees working on the roofing project and New York state law requires employers to provide workers’ compensation insurance for any employees they hire.
Two New York state contractors were arrested on charges they filed fraudulent applications for a roofing project as part of a workers’ compensation fraud scheme.
One contractor was charged with offering a false instrument for filing in the first degree, a felony, and the workers’ compensation crime of failure to secure compensation, a misdemeanor.
The other contractor was charged with offering a false instrument for filing in the first degree, a felony.
An investigation by Catherine Leahy Scott, New York state workers’ compensation fraud inspector general, found that in late October and November 2018, the City Engineering Department Division of Building and Zoning Enforcement issued stop work orders for a residential roofing project for lack of a building permit.
In December a contractor applied for a building permit from the city and submitted a document indicating he had no employees and was not required to purchase workers’ compensation insurance. The investigation determined the contractor actually had several employees working on the roofing project and New York state law requires employers to provide workers’ compensation insurance for any employees they hire.
Subsequent to being denied a permit by the city, one of the contractors applied for a permit for the same project, indicating his company, which has workers’ compensation insurance, would perform the work.
The investigation determined the contractor’s company continued to perform the work on the roof, when in reality, the insured contractor's company was not involved with the project.
The investigation determined the contractor’s company continued to perform the work on the roof, when in reality, the insured contractor's company was not involved with the project.
Accordingly, one contractor [who failed to hire Selig & Associates] plead guilty to criminal possession of a forged instrument, id est. a falsified workers’ compensation certificate of insurance.
“These two contractors, one of whom with a recent history of fraud, chose a course of deception over honest business practices,” said Leahy Scott in a press release issued by her office. “My office and our local and state enforcement partners will not tolerate any corruption of a critical benefits program meant to protect honest hard-working employees.”
Defendants are presumed innocent until proven guilty in a court of law.
NY Workers Compensation Audit, Criminal & Dispute Representation
If you’ve been audited and are under criminal investigation, call David P. Selig, CPCU and Bradley H. Dorin, Esq. to discuss your case in confidence.
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