Woman Extradited from Utah and Arraigned for Insurance Fraud
March 23, 2011
District Attorney P. David Soares announced that KELLY WOODS, 23, was arraigned this morning on a sealed indictment in front of the Honorable Thomas Breslin on (1) count of Insurance Fraud in the Second Degree, a Class “C” Felony, (1) count of Grand Larceny in the Third Degree, a Class “D” Felony and (1) count of Worker’s Compensation Fraud, a Class “E” Felony. WOODS faces a maximum of 5 to 15 years in prison convicted of the charges.
“In these tough economic times when our state and local governments are deciding which vital services to cut next, I will not allow undeserving individuals to steal resources and benefits from those who truly need assistance,” commented Albany County District Attorney David Soares. “We will continue to work with our partners in law enforcement to identify and stop those who are stealing from the tax payers of New York State.”
“Fraudulent behavior uses time and resources that should be devoted to helping honest workers get benefits when they’re injured on the job,” New York State Workers' Compensation Board Chair Robert E. Beloten said. “We fight fraud because it casts a pernicious shadow on hardworking people. It also drives up costs at a time when state government is working to improve New York’s economic climate.”
“Workers’ compensation fraud attempts to drain millions of dollars from honest businesses, workers and consumers” said New York State Insurance Fund Chief Deputy Executive Director and Secretary to the Board of Commissioners Francine James. “Through the assistance of local law enforcement and as reflected in this case, NYSIF has and will continue to aggressively fight workers’ compensation fraud.”
It is alleged that between July 26, 2008 through November 28, 2010, WOODS faked a neck injury and fraudulently represented to doctors, the New York State Insurance Fund and the Workers Compensation Board that she suffered from permanent fixed torticollis – a permanent flexion of her head at a 90-degree angle so that it was planted on her right shoulder at all times. This was allegedly the result of a workplace accident at a local construction firm based in Colonie. However, it is alleged that during this period, as established by numerous days of surveillance footage, WOODS was able to freely move her head and neck normally.
It is further alleged that WOODS was attempting to obtain a lump sum settlement from the New York State Insurance Fund of $316,400.00. Additionally, it is alleged that as a result of Woods’ alleged fraud, she stole $42,000.00 in compensation payments from the New York State Insurance Fund during the period of July 26, 2008 through November 28, 2010. The construction company was also victimized by the crime, as their workers compensation premiums increased dramatically during a particularly difficult time in the local construction industry.
It is further alleged that when WOODS was informed that she was going to be charged criminally, she fled New York State for Utah and ultimately had to be extradited.
Assistant District Attorney Benjamin Clark of the Financial Crimes Unit is handling the prosecution of this case.
For more information, please contact Heather Orth at (518) 275-4704.