Friday, February 10, 2012

NY Gains 18 Arrests for Workers' Comp Fraud

Insurance Fraud ? By Trace America on February 9, 2012 at 2:23 PM

One New York man is among the 18 who were arrested in a state-wide crackdown on workers? comp fraud.

According to Business First, after an investigation was done by the fraud bureau of the State Department of Financial Services (DFS), John Czechowski was charged with third degree insurance fraud, grand larceny, offering a false instrument for filing, and workers? compensation fraud.

In relation to this case, the state said Czechowski collected $12,000 from the New York State Insurance Fund after he was classified as totally disabled due to a back injury that he suffered while working as a roofer. Investigators discovered he was also working off the books for a contracting company while collecting those benefits.

Among those arrested were several individuals who continued to work after claiming they were disabled, some who faked injuries to collect the payments, and even one woman who was cashing the checks of her dead husband.

Benjamin Lawsky, the superintendent of DFS, stated that the arrests are the result of trying to save businesses money by cracking down on workers? comp fraud.

?Workers? compensation fraud is a serious crime that victimizes honest businesses and taxpayers who are forced to shoulder the burden of higher premiums. Strong anti-fraud activities complement the state?s ongoing work to drive down the cost of workers? compensation insurance,? he said.

Lawsky also noted that Workers? compensation fraud is a crime that affects consumers and businesses in New York, forcing insurers to boost premiums as they make up for the money that is being obtained through fraud.

The arrests were the result of several investigations that were led by DFS, along with the Office of the Inspector General of the New York State Workers? Compensation Board, the New York State Insurance Fund and other insurers.

Remember that all of the accused are innocent until proven guilty.


Tags: New York, Workers Compensation Fraud

Source: http://www.thefraudreport.com/index.php/2012/02/ny-gains-18-arrests-for-workers-comp-fraud/

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