New York Bus Company Owner Charged with Shirking Workers’ Comp

February 12, 2009

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An investigation by the New York State Insurance Department and Workers’ Compensation Board has led to charges against the owner of Yonkers bus service who failed to carry workers’ compensation insurance for his 25 employees.

Salvatore DiPaolo, 59, owner of Service Transit Lines Inc., was arrested by state police at Hawthorne and charged with violating the state workers’ compensation law. He also faces charges of harassment and obstructing governmental administration, both in the second degree, resulting from an altercation on June 10 when Workers’ Compensation Board investigators issued him a stop work order for operating without insurance.

Authorities say DiPaolo refused to carry coverage for at least two years. The premiums for the coverage were estimated at $130,000.

His clients included the Harrison School District, the Town of Mamaroneck and various casinos.

He faces up to four years in prison on the felony charge.
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Source: New York State Insurance Department

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Latest Comments

  • February 12, 2009 at 4:04 am
    NY Broker says:
    Why is a public school district hiring a sub-contractor without first obtaining a certificate of insurance (proof of WC coverage)? Someone at that district wasn't doing his/he... read more
  • February 12, 2009 at 1:25 am
    Darwin says:
    Folks need to hear more about this, The guy had school district contracts to bus kids, and the public school district didn't check up on him either. Under the new law, there s... read more
  • February 12, 2009 at 1:02 am
    NY agent says:
    After 2 years I hope they would finally charge him. I assume they gave him many notices before this. I just wonder why it took so long to shut him down.
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