NYSIF Newsletter Chronicles Two Premium Fraud Scams

Thursday, August 30, 2018 | 0

New York prosecutors have filed charges against two companies that together underpaid workers’ compensation premiums by $525,000, according to the latest newsletter published by the New York State Insurance Fund.

NYSIF reported in the Workers' Comp Advisor that a joint investigation with the Manhattan District Attorney’s Office and the state Department of Labor uncovered $325,000 in unpaid premiums and $517,000 in stolen wages.

The investigation began after the death of an employee of SSC High Rise Construction. Investigators learned that the company was paying workers in cash.

The corporation pleaded guilty to manslaughter and agreed to pay a $10,000 fine, repay wages to 77 current and former employees, and pay restitution and penalties to NYSIF resulting from undisclosed payroll, the newsletter says.

A separate investigation led to charges against Youker Construction in Syracuse and its owner, Robert Youker Jr., for alleged workers’ compensation insurance fraud, offering a false instrument for filing and criminal possession of forged instrument, according to NYSIF. The company allegedly underpaid premiums by $200,000 by misrepresenting the nature of its work.

Investigators say Youker applied for insurance coverage and filed a form stating that his company installed home siding and did carpentry work. He allegedly concealed the company’s roofing work by forging contracts that included siding work, but not roofing.

Customers of Youker Construction noted the company’s roofing work on social media sites, NYSIF said.