Fraud of the Week
Workers Compensation – New York
Amount – $1 million+
A pair of contractors have been indicted for misclassifying their workers in order to obtain lower premium payments. The workers performed demolition work and operated heavy machinery, but they were classified by the contractors as florists, office workers and sales people so the contractors could receive more profits. Someone tipped off authorities as to what was happening. The pair are charged with insurance fraud and offering a false statement. They also face penalties for fraudulent practices under the state's workers compensation law.

