New York Carpenter Arrested for Workers’ Comp Fraud

September 18, 2009

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

Topics Fraud Workers' Compensation New York

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Latest Comments

  • September 18, 2009 at 6:37 am
    Big Mike In CALI says:
    Well, this IS the Insurance Journal we're talkin' about here...don't see too many Pulitzer nominations in it's future for editing or comprehensive writing, for that matter!
  • September 18, 2009 at 1:48 am
    joe says:
    I am just glad to see someone busted for this, when many honest businessowners struggle for being honest. Glad the law in NY makes it a felony; I am not sure how GA law applie... read more
  • September 18, 2009 at 1:08 am
    expert says:
    Payroll IS the exposure and premium basis for the calculation of Workers' Compensation premiums. Sales has absolutely nothing to do with premium computations. It appears that ... read more

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