32 nabbed for alleged workman's comp fraud
State and county officials arrested 32 Westchester business owners Thursday in what they say was a crackdown on workman?s compensation fraud. According to investigators from the New York State Workman's Compensation Board, state police and the Westchester District Attorney?s Office, the business owners failed to provide insurance to their employees and then helped employees file for injuries under the uninsured employers fund.
Investigators say they caught the fraud because many of the businesses filed paperwork claiming they were one-man operations while operating for 12 hours straight. This raised a red flag, officials say.
Depending on the business, it may cost an owner $3,000 a year in workman?s comp premiums on average. But now in some cases they may be facing over $60,000 in fines and up to four years in prison.