Print Drywaller Charged in $600G Comp FraudOctober 19, 2010The New York State Insurance Fund announced the arrest of a Yonkers drywaller yesterday for workers’ compensation fraud in a case involving more than $600,000 in underpayments for insurance premiums. Manhattan District Attorney Cyrus Vance charged Mark Cathy, 44, owner of Jordan Drywall, Inc., with fraudulent practices, a felony, in violation of the New York State Workers’ Compensation Law on October 18. The arrest followed a joint investigation by the DA’s Office and NYSIF’s Division of Confidential Investigations. Mr. Cathy allegedly underreported payroll over a four-year period from February 2004 through March 2008 to avoid paying NYSIF the correct amount of workers’ compensation premium for his company. As a result, investigators said, Mr. Cathy allegedly committed fraud against NYSIF for an amount totaling $630,373. “Workers’ compensation premium fraud can amount to significant levels in a relatively short period,” NYSIF Chief Deputy Executive Director Francine James stated. “Premium fraud also constitutes a serious offense on another level, extracting an incalculable price by giving dishonest businesses an unfair advantage against competitors who abide by the law, which has a detrimental impact on our overall economy.” 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.