The owner of a Long Island carpentry business has been charged with fraud for failing to disclose over $900,000 in sales to his workers’ comp insurer – a move which lowered his insurance premiums by $44,000.
The New York State Insurance Fund (NYSIF) says Stephen Schiavoni, 48, was arrested by local police earlier this week for violating the workers’ compensation law and fraudulent practices, a felony.
Investigators for the Insurance Fund said the found that actual payroll for his business and had concealed from NYSIF premium auditors over $900,000 in receipts from another contractor who is also a NYSIF policyholder. The audit covered the period from March, 2006 to March, 2007.
The New York State Insurance Department’s Frauds Bureau and the Workers’ Compensation Board Inspector General assisted in the investigation.
Source: NYSIF
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