New York Employer Floored with Workers’ Comp Fraud Charge
The 28-year-old owner of a Bayshore, New York flooring company faces a charge of workers’ compensation fraud for allegedly cheating the New York State Insurance Fund out of $33,000 in unpaid premium.
The Suffolk County District Attorney’s Insurance Crime Bureau arrested the man recently, charging him with fraudulent practices in violation of Section 114 of the New York State Workers’ Compensation Law, a felony.
The man’s arrest followed a joint investigation by Suffolk County DA Thomas Spota’s Office, the New York State Insurance Department Frauds Bureau and NYSIF’s Division of Confidential Investigations.
Investigators said the man, owner of North Star Flooring in Bayshore, N.Y., carried workers’ comp insurance for his company with NYSIF, but allegedly underreported his payroll to lower his premium.
According to investigators, the defendant allegedly failed to report approximately $700,000 in sales from 2008 to 2009, resulting in a lower cost for workers’ comp insurance during that period. (workersxzcompxzkit)
By allegedly falsifying his payroll reporting, the man underpaid his NYSIF premium by $33,000, investigators said.
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