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You are here: Home / Claim Management / Fight Workers Comp Fraud & Abuse / New York Business Owner Arrested for Failing to Provide Workers Comp Insurance For Employee Who Was Raped and Murdered

New York Business Owner Arrested for Failing to Provide Workers Comp Insurance For Employee Who Was Raped and Murdered

July 4, 2010 By //  by Robert Elliott, J.D. Leave a Comment

A business owner was arrested for failing to provide workers’ compensation insurance for an employee who was raped and murdered in 2007 according to an investigation by the New York State Insurance Department’s Frauds Bureau and the Workers’ Compensation Board Office of the Inspector General.
 
The man is accused of failing to insure the woman whom he employed as a property manager when she was killed. He is also accused of lying by testifying at a Board hearing saying the worker did not work for him. He could be sentenced to up to seven years in prison if he is convicted. (WCxKitz)
 
Authorities learned the individual failed to carry insurance when the deceased employee’s estate filed a death benefit claim with the Workers’ Compensation Board. The Board paid the woman’s estate $50,000, an amount the man reimbursed to the Board earlier this year. The money was paid from the Board’s Uninsured Employers’ Fund, which pays claims for people whose employers neglect to carry workers’ comp insurance.

In addition,
the employer paid $5,000 for the woman’s funeral and another $6,000 in penalties to the Board for failing to carry insurance.  (WCxKitz) He also has an outstanding $30,000 penalty for operating without insurance this year. He is disputing the penalty, saying he doesn’t have any employees.
 
 Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers’ Compensation costs, including airlines, healthcare, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. Contact:  Robert_Elliott@ReduceYourWorkersComp.com   or 860-553-6604.

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Do not use this information without independent verification. All state laws vary. You should consult with your insurance broker or agent about workers' comp issues.

©2010 Amaxx Risk Solutions, Inc. All rights reserved under International Copyright Law. If you would like permission to reprint this material, contact
Info@WorkersCompKit.com 

Filed Under: Fight Workers Comp Fraud & Abuse, NY Workers Comp Issues Tagged With: New York Workers Comp Issues

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