Logging Co. Owner Charged with WC Fraud as Both Employee and Employer

Wednesday, March 16, 2016 | 0

The owner of an Upstate New York logging company was arrested Tuesday on charges that he received workers' compensation benefits to which he was not entitled while failing to provide coverage for two employees of his own company.

Investigators for the state Inspector General's Office determined that David C. Sigl of Auburn collected benefits for a 2013 injury while working as a heavy equipment operator for a Syracuse construction firm, the newspaper reported. He also failed to provide workers' compensation coverage for employees of his company, Lake Country Logging.

“He stole benefits he was not entitled to, and he failed to protect and provide employees of his own company with the required coverage he selfishly took advantage of," Inspector General Leahy Scott said in a press release. "The Workers’ Compensation system is meant to protect honest, hard-working New Yorkers, and I will relentlessly pursue anyone who steals from it or who leaves their own employees vulnerable by not providing this critical coverage."

The Inspector General's Office said Sigl earned at least $135,000 since the 2013 injury and received more than $75,000 in workers' compensation benefits, repeatedly filing paperwork stating that he was not earning any other income. Cayuga County District Attorney Jon Budelman said in a press release that Sigl had been observed climbing in and out of log-skidder tractors, climbing trees and using chainsaws while receiving benefits.

Sigl is charged with second-degree larceny, second-degree insurance fraud, five counts of fraudulent practices and five counts of first-degree offering a false instrument for filing, all felonies. He was also charged with failing to secure compensation, a misdemeanor.

Sigl is due to appear in court on the charges on March 21.