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Workers Compensation Fraud Sting Nets NY Business Owners

Four New York State business owners were arrested last week on workers compensation fraud charges. The business owners were charged with failing to pay into the state’s workers’ compensation fund. Other charges ranged from grand larceny to insurance fraud to falsifying business records. New York State Inspector General Catherine Leahy Scott announced the workers compensation fraud arrests at a press conference. She also announced that other arrests would be coming soon.

State Investigates Nursing Home For Workers Compensation Fraud

One of the targets of the workers compensation fraud sting was the Greenbriar Home for Adults, a nursing and adult care home in Homer, New York. The owner, 73-year-old John Francher, was arrested on workers compensation fraud charges stemming from his operation of the care center. Ms. Scott alleged that Mr. Francher operated a business with ten employees, but did not purchase workers’ compensation insurance coverage. New York state law requires businesses with more than five employees to purchase such coverage.

Nursing Home Owner Had Previous Workers Compensation Fraud Charges

Court records showed that Mr. Francher had at least one other workers compensation fraud felony charge on his record. In February 2014, he was convicted of failing to secure payment of workers’ compensation insurance premiums. At that time, Mr. Francher had worked at the Briarcliff Manor adult care facility in Bath, New York. He now faces the same workers compensation fraud charge for his activities at the Greenbriar facility. The punishment for a second felony conviction includes a fine between $10,000 and $50,000, plus other financial penalties.

Tree Surgeon Charged With Workers Compensation Fraud

The owner of a tree surgery business was also charged with workers compensation fraud. Steven M. Spratley owner of Spratley and Sons Tree Surgeons, was charged with fraudulent practices. Ms. Scott alleged that Mr. Spratley made false claims during a Workers’ Compensation Board hearing in 2013. She accused Mr. Spratley of claiming that one of his workers who was injured in a 2011 accident was not an employee, and was not entitled to workers compensation. If the statements are found to be false, he could be convicted of workers compensation fraud.

Contractor Faces Workers Compensation Fraud, Larceny Charges

A contractor faces at least three felony charges, including workers compensation fraud and grand larceny, for filing false workers compensation documents. Douglas S. Griffen, owner of Fingerlakes Excavating LLC, was arrested for workers compensation fraud, falsifying business records, and third-degree grand larceny. Ms. Scott alleged that Mr. Griffen filed false documents to win a contract from a home building company. The documents claimed that his company had workers compensation coverage, which enabled him to win the contracting bid. He is currently out on bail and due back in Tompkins County Court next week.

Sources: Syracuse Post-Standard, Auburn Citizen

Know Your Rights in a Workers Compensation Fraud Lawsuit

To find out how we can help you with a workers compensation fraud lawsuit, contact us today at 877-892-2797. Our friendly staff will ask a few questions about your case and connect you to a workers compensation fraud lawsuit attorney. You can also fill out the “Free Case Evaluation” form at the top of this page.

NOTE: This blog post is a news story and does not constitute and endorsement of the Amaro Law Firm by any parties mentioned herein.