Nassau County District Attorney Kathleen Rice has announced the results of a year-long investigation into 10 separate allegations of worker's compensation fraud that were referred to her office by the state insurance officials committed to ridding the system of fraud. Rice said the total theft uncovered as a result of this investigation amounts to $953,319.
"The theft of tax dollars by dishonest employers and employees who think they have a right to cheat the system will not be tolerated by this administration," said Rice. "We will continue to work with state authorities to hold accountable those who steal from the taxpayers of this state."
According to the DA's office, Scott Edvabsky, 37, of Levittown, is one of the subjects named in the investigation. Rice said he is the owner of Scott Demo Contracting, Inc., and applied for workers compensation insurance on March 12, 2004.
Rice said Edvabsky gave false information as to the scope of his company's operation, number of employees and payroll. Edvabsky submitted false insurance certificates to his contractors claiming he had workers' compensation insurance, the DA said. As a result of Edvabsky giving false information, Rice said his premiums were undercharged and he owes the New York State Insurance Fund $699,032.56.
Edvabsky has been charged with Grand Larceny in the Second Degree, Insurance Fraud in the Second Degree, Offering a False Instrument for Filing in the First Degree, and a felony violation of the Workers Compensation Law for fraudulent practices. He is being represented by John Tasolides, Esq., of Syosset. He faces a maximum of 15 years in prison if convicted of the charges.
Richard Cosgrove, 53, of Bellerose; Denise Betts, 47, of Farmingdale; Chekesha Bethea, 34, of Freeport; Costas Hatzinkontos, 41, of Astoria; Vincent Catala, 41, of Syosset; Anthony Barbera, 38, of Huntington; Robert Bass, 52, of Jericho; Jose Giron, 28, of Brentwood; and Steven Wienckowski, 41, of Sound Beach, were also named in the investigation.
Rice thanked the New York State Insurance Department, the Insurance Fund, and the Inspector General for Workers Compensation for their involvement in these cases and their dedication to saving taxpayer dollars.
"Workers' compensation fraud is a serious problem that New York State is attacking with a great deal of success," New York State Insurance Fund CEO David P. Wehner said. "Local law enforcement, such as Nassau District Attorney Kathleen Rice, understands how important this is. In these cases, crimes alleged to have been committed by claimants, businesses and contractors against New York State and against the workers' compensation system represent close to $1.5 million in actual fraud, restitution and estimated future savings. Working together with the New York State Insurance Department, the Workers' Compensation Board Fraud Inspector General and local law enforcement, the New York State Insurance Fund continues to make reducing workers' compensation fraud a top priority."
John H. Burgher, WCB Fraud Inspector General added, "These arrests demonstrate the strong cooperation between the law enforcement community and the Workers' Compensation Board as we aggressively combat workers' comp fraud throughout New York State. Whether the fraud is being conducted by an employer or an individual, we will find you and prosecute to the fullest extent of the law."
The charges are merely accusations and the defendants are presumed innocent until and unless proven guilty.