Contractor Pays $625,000 in Restitution for Premium Fraud

A New York contractor paid $625,000 in restitution after pleading guilty to underreporting his payroll by more than $3.5 million. Mahendranauth Khargie, 36, and his company, GC Stud Inc., were sentenced Monday to a conditional discharge after satisfying the restitution order. Khargie and his company pleaded guilty in October to a felony count of insurance fraud, and the company also pleaded guilty to failing to carry workers' compensation coverage. Nassau County prosecutors said audits by the New York State Insurance Fund revealed that Khargie underreported payroll by more than $3.5 mil...