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New York Contractors Arrested for Failing to Have Workers’ Comp Insurance after Employee Injured

pexels-jeshootscom-834892-300x200New York State Inspector General Letizia Tagliafierro announced the arrest of two Pearl River-based contractors for failing to carry workers’ compensation insurance as required by law.

Peter McCann and Kathryn McCann, both of Pearl River, NY, were arraigned in court on charges of failure to secure compensation and two counts of fraudulent practices. The press did not name an attorney for them.

According to the inspector general’s press release, the Pearl-River contractors owned and operated a construction company based in Railroad Avenue called PMC Construction. They are accused of repeatedly claiming PMC Construction had no workers, and therefore did not meet the state’s requirement for workers’ comp insurance, every time they filed for home improvement licenses with the Rockland County Office of Consumer Protection.

In January 2016, a painter who was allegedly working on a PMC project fell off a ladder and fractured his foot. The individual filed a workers’ compensation claim with the state indicating that the injury occurred while he was working for PMC.

After the claim was filed, the Office of the New York State Inspector General reviewed multiple invoices submitted by PMC Construction between November 2015 and September 2016 to the client of the project where the painter was injured. The invoices purportedly listed more than five workers on the project, including the injured worker.

Failing to carry insurance for more than five workers is a felony in New York. When the Workers’ Compensation Board questioned the male contractor about the injured employee, he allegedly admitted that he did not have the required workers’ comp insurance. The board found PMC Construction liable for the injured worker’s claim, which is being paid by the Uninsured Employers Fund.

“Workers’ compensation insurance protects employees and employers,” said Inspector General Tagliafieroo. “When business owners attempt to skirt rules to ensure coverage for their workers who are engaged in dangerous occupations, they show a disregard for their safety.”

Tagliafierro thanked the Rockland County District Attorney’s Office for arresting the suspects and prosecuting the case. Rockland County DA Tom Walsh said, “My office worked with investigators from the New York State Inspector General’s Office to ensure the prosecution of these defendants. Here is a perfect example of state and local agencies working jointly to ensure justice was served.”

With some few exceptions, New York State Workers’ Compensation Law requires all employers to carry workers’ compensation insurance. It covers an injured employee’s medical expenses, ongoing rehabilitation, as well as a portion of their lost wages. The law is especially stringent for employers in the construction industry because construction site accidents account for the highest proportion of workplace injuries and illnesses reported in the U.S. every year.

No matter what state your construction company is based in, you should immediately consult an experienced workers’ comp fraud defense attorney if the state accuses you of not carrying workers’ compensation insurance. A good attorney can examine the evidence and build a good defense to help minimize the potential penalties or have the charges dropped.

South Florida Workers’ Comp Fraud Attorney

Are you accused of committing workers’ compensation fraud in Florida? Contact Brian Silber, P.A. to set up a free initial consultation with one of South Florida’s most experienced workers’ compensation fraud attorneys.

Source: 11.13.20 Inspector general announces arrest of contractor for failing to have workers comp insurance after worker injured on job.pdf

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