Suffolk Contractor Repays $20,000 for Attempted Fraud
June 15, 2009
A Suffolk County contractor has paid $20,000 in premium owed on a workers’ compensation insurance policy after attempting to commit fraud against the New York State Insurance Fund.
Michael Dibella, 42, of Commack, NY, pleaded guilty to attempted fraudulent practices on June 5, 2009, a misdemeanor, and was ordered to pay restitution on a policy canceled by NYSIF for non-payment in 2004.
Mr. Dibella was arrested by the Suffolk County District Attorney Thomas Spota’s Insurance Crime Bureau on October 2, 2006 and charged with fraudulent practices, a felony, for participating with his wife in an alleged scheme to defraud NYSIF, the state’s largest workers’ compensation insurance carrier.
“NYSIF aggressively attacks workers’ compensation fraud because it not only escalates the cost of insurance, it directly impacts the consuming public and impedes recovery of the state’s economy,” NYSIF Executive Director James J. Wrynn said. “The effects of fraud are compounded when businesses attempt to cheat on workers’ compensation policy premium. Premium fraud not only puts honest businesses at a competitive disadvantage, it leaves workers vulnerable if they are injured on the job by robbing them of their rightful protections under the Workers’ Compensation Law.
“NYSIF has no tolerance for fraud. With assistance from local authorities such as Suffolk DA Tom Spota, and in cooperation with the New York State Insurance Department and the state Workers’ Compensation Fraud Inspector General, we continue to pursue fraud committed by policyholders, claimants and medical providers.”
After Mr. Dibella’s policy was canceled in 2004 for non-payment, a new workers’ compensation policy was issued by NYSIF to Tina Muscarella, doing business as MDB Construction Corp.
Investigators said Ms. Muscarella was married to Mr. Dibella, and the application intentionally concealed the fact that Mr. Dibella was the real owner of MDB construction, or that he owed NYSIF money on the prior canceled policy.
The subsequent policy issued to Ms. Muscarella was canceled for non-payment in July 2006.