Workers' Comp Board & Insurance Dept. Announce
Workers' Compensation Board Chairman Robert R. Snashall and New York State Superintendent of Insurance Gregory V. Serio announced the arrests of five employers on fraud charges. The employers, all of whom operate landscaping businesses, are charged with felony falsifying business records and felony workers' compensation fraud. [.....]
Under law, all business owners who have employees are required to secure insurance to protect workers injured on the job.
Board Chairman Snashall said, "This crime is particularly offensive because these employers were willing to ignore the law at the expense of injured workers. The Governor has made it clear. If you flaunt the law you will pay a price. Sooner or later unscrupulous people will learn that it's just not worth it."
"By pooling the resources and expertise of the Department's Frauds Bureau with the Rockland County District Attorney's office, the State Workers Compensation Fraud Inspector General and the Clarkstown Police Department, we have prevented these criminals from continuing to defraud the workers compensation system," said Superintendent of Insurance Gregory V. Serio. "We remain committed to finding and prosecuting fraudsters like those arrested today, whose actions erode a vital workplace protection that was created for the benefit of all workers."
In 1996, Governor George E. Pataki created the Office of Fraud Inspector General and elevated workers' compensation fraud to an e-felony. The charges carry a possible prison term of up to 4 years, fines and restitution. Workers' injured while working for an uninsured employer are entitled to benefits paid through the Uninsured Employers Fund which is maintained by the Workers' Compensation Board and financed through a surcharge added to the premiums paid by all of New York's employers.
Workers' Compensation Fraud Inspector General John H. Burgher said, "Employers who evade their responsibility to protect injured workers shift their liability onto the backs of 's law abiding employers