Oriska Insurance Company, a small workers' compensation carrier being investigated for fraud by the FBI, remained under the control of the New York Insurance Department after a court proceeding yesterday.
The Oriskany, N.Y.-based company, which the department has called insolvent, was due to challenge the temporary receivership that was granted last week, but the case was put on hold until Aug. 16 yesterday when Oneida County Supreme Court Justice Samuel D. Hester announced he was removing himself from the case, according to Andrew Mais, an insurance department spokesperson.
Judge Hester last Thursday allowed the state to take over after Insurance Superintendent Howard Mills, in a court filing, said if the company kept doing business it would be "hazardous to its policyholders, creditors and the public."
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