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Eight People, Nine Businesses in Long Island, NY, Charged with Payroll, Workers’ Comp Fraud

justice-2060093_1920-300x200The Suffolk County District Attorney’s Office announced that eight individuals and nine businesses have been charged in a labor-related crackdown.

The alleged crimes collectively stole more than $250,000 in workers’ wages and benefits. They include the nonpayment of more than $58,000 for unemployment insurance fund contributions and failure to pay more than $133,000 to the state’s fund for workers’ compensation, prosecutors said. Two of the defendants also allegedly dumped polluted water into a public storm water drain.

The eight defendants named in the case are:

  • Robert Montgomery of Garden City was charged with scheme to defraud, offering a false instrument for filing, and discharging into state waters without a permit. Montgomery’s business, Dix Hills Brushless Car Wash, also faces similar charges for allegedly paying employees less than minimum wage and not paying overtime. The business also falsely reported having no workers to avoid paying unemployment insurance payments.
  • Andrew Woodstock of Oyster Bay was charged with scheme to defraud and willful failure to file a true certified payroll. Woodstock’s company, Woodstock Construction Group, Inc., faces similar charges for allegedly underpaying workers, improperly classifying lower-wage workers, and not paying overtime.
  • Paul Gilistro of Selden was charged with scheme to defraud and deliberately failing to file a true certified payroll. Gilistro’s company, Goldstar Installation Services, Inc. was also charged for allegedly misclassifying employees as independent contractors to avoid paying the statutory minimum wage on jobs performed in Long Island. Gilistro allegedly falsified payroll records he filed to reflect the job classifications and wages the employees should have received.
  • Nicholas Guercio of Brightwaters was charged with two counts of first-degree offering a false instrument of filing. Through his company, Environmental Compliance Associates Corp., Guercio allegedly submitted forged lien releases signed by two subcontractors saying they were paid when they were actually owed almost $30,000.
  • Arsenio Carcamo of Oceanside was charged with insurance fraud practices. He reportedly didn’t disclose his ownership of Answer Construction Corp. when he applied for a workers’ compensation policy.
  • Tosef Siddiqi of Westbury was charged with offering a false instrument for filing and willful failure to file a true certified payroll. Through his company, Alllstate Enterprises, Siddiqi submitted a forged performance bond to a school district after winning the bid for a 2018 district-wide capital improvement project. He and his company failed to submit certified payrolls for their time on the project.
  • Alan James of St. James was charged with fraudulent insurance practices. Auditors discovered that between 2017 and 2018, James’ company, APJ Restoration, purportedly failed to report more than $450,000 in revenue to avoid paying about $69,000 in policy premiums.
  • Richard Hall of Northport and his company, Regal Contracting, were charged with scheme to defraud and deliberately failing to pay prevailing wages of less than $25,000. Hall and his company are accused of failing to pay labor benefits for several workers on five different projects.

“Here in Suffolk County, we will not tolerate the exploitation of workers or our taxpayers by greedy corporations and business owners,” Suffolk County District Attorney Timothy D. Sini said in a news release. “That is why my office, alone with our partners, is aggressively identifying and prosecuting bad actors in the business community and holding them accountable.”

Every state has laws requiring companies to have workers’ compensation insurance coverage. By mandating workers’ comp insurance, states provide an incentive for businesses to keep employees safe and reduce the risk of lawsuits against business owners.

If your business is under investigation for workers’ compensation fraud, then you should immediately consult with an experienced defense attorney who can review your case and figure out what you need to do to protect yourself against fraud allegations.

Miami Workers’ Compensation Fraud Attorney

Are you a business owner accused of workers’ compensation fraud? Contact Brian Silber, P.A. for a free initial consultation with one of Miami’s most experienced workers’ compensation fraud defense attorneys.

Source: 3.9.20 8 people, 9 businesses charged in labor crackdown.pdf

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