Cleaning Co. Owner Charged in Fraud
October 19, 2010
The New York State Insurance Fund announced the arrest of an Erie County businessman who allegedly lied on company payroll records to receive a reduced workers’ compensation premium.
George Azattian, of Amherst, NY, faces felony fraud charges of offering a false instrument for filing and grand larceny following his arrest on October 13.
Mr. Azattian, 58, allegedly filed a false payroll report with NYSIF that substantially understated payroll for his cleaning company, Twister Enterprises, Inc., in April 2008, which led to a reduction of his workers’ compensation premium.
Subsequently, investigators said, auditors found that the payroll report allegedly understated the actual company payroll by over $35,000. As a result, Mr. Azattian allegedly defrauded NYSIF for more than $2,400 in premium.
Mr. Azattian’s arrest followed a joint investigation by NYSIF’s Division of Confidential Investigations and the New York State Insurance Department Frauds Bureau.
Criminal complaints and indictment are accusations only. Defendants are presumed innocent until proven guilty.
NYSIF, created as part of the Workers' Compensation Law of 1914, is New York’s largest workers’ compensation insurance carrier. By law, NYSIF is a competitive insurance carrier that sells workers' compensation and disability benefits insurance to any employer doing business in New York State. Approximately 175,000 employers hold NYSIF workers' compensation insurance policies, constituting about 41 percent of the market, while 61,000 employers maintain active disability benefits policies.