Roof Falls In On Two Biz Owners in Fraud Cases
December 23, 2010
New York State Police arrested a 26-year-old contractor on workers’ compensation fraud charges Tuesday after it was found that he allegedly hid work as a roofer from the New York State Insurance Fund.
Ronald Seltz, 26, of Buffalo, owner of Independent Contractors, Inc., faces felony fraud charges of offering a false instrument for filing, grand larceny and insurance fraud following his arrest on December 21.
Investigators said Mr. Seltz applied for workers’ compensation insurance with NYSIF as a siding contractor. After one of Mr. Seltz’s employees filed a claim with NYSIF in a fall from a roof, an investigation revealed that Independent Contractors allegedly did roofing work since 2007.
Mr. Seltz allegedly defrauded NYSIF of more than $3,400 during that time to pay a lower premium as a siding company for his workers’ compensation insurance.
He was one of two owners allegedly engaged in roofing who faced workers’ compensation fraud charges in separate investigations initiated by NYSIF’s Division of Confidential Investigations (DCI).
Pulver Roofing Company, Inc., based in Utica, NY, faces charges of offering a false instrument for filing and fraudulent practices in violation of the New York State Workers’ Compensation Law – both felonies – following the arrest of a partial owner, Williams Owens, of New Hartford, NY, on December 17.
Investigators said Mr. Owens, 64, received weekly workers’ compensation benefits for an injury he sustained while running his business. During that time he returned signed statements to NYSIF indicating he was not earning more than $400 a week. However, the investigation revealed that he allegedly was earning substantially more in exceeding the limits of his disability.
Mr. Owens faces felony charges of offering a false instrument for filing, fraudulent practices and insurance fraud. Investigators said the case totaled $83,400 in alleged fraud.
DCI conducted the investigation jointly with the New York State Police, Oneida County District Attorney’s Office, the NYS Insurance Department Frauds Bureau and the NYS Workers’ Compensation Board Fraud Inspector General's Office.
Criminal complaints and indictments 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 31 percent of the market, while 61,000 employers maintain active disability benefits policies.