Queens, NY Asbestos Removal Contractor Sentenced in Insurance Fraud Case

On July 29, 2009, the New York Times reported that the owner of a Queens, NY asbestos-removal company had been sentenced to four years in prison for providing fraudulent information to workers’ compensation insurance carriers regarding his company.

The 71 year old man, who plead guilty to mail and tax fraud, is required to pay restitution for unpaid insurance premiums, including over $1 million to the New York State Insurance Fund and approximately $579,000 to two private insurance carriers.

The investigation revealed that when the man applied for workers’ compensation coverage, he repeatedly provided false information with regard to the number of individuals in his employ. In some cases, he reported that he and a receptionist were the only two employees in the company. By providing inaccurate information, the man was then able to secure coverage at lower rates.

Prosecutors also discovered the man repeatedly changed the name of his company in order to avoid discovery.

The man, who ran his businesses for over a decade, worked on asbestos-removal projects throughout New York state, often using crews consisting of immigrant workers.  The man would misclassify these workers as independent contractors rather than as employees of his company.

Even limited exposure to asbestos is known to cause serious illnesses such as mesothelioma cancer, asbestos-related lung cancer or asbestosis.

If you or a loved one has been diagnosed with an asbestos illness, contact our lawyers today for a free review of your case. A Weitz & Luxenberg representative will contact you as soon as possible.