Print Construction Exec Caught in Alleged Payroll ScamApril 29, 2011A 46-year-old construction company executive is facing multiple felony charges after allegedly underreporting his payroll to avoid paying premium he owed for workers’ compensation insurance. Investigators from Manhattan District Attorney Cyrus R. Vance’s Office arrested Carlos Ramos on April 6, 2011 following a joint investigation of alleged workers’ compensation fraud with the New York State Insurance Fund Division of Confidential Investigations. The charges against Mr. Ramos include allegedly underreporting payroll for his company, Seven Stars Construction, Inc., from July 2003 through July 2007 to the New York State Insurance Fund. Investigators said the alleged scheme involved using a check cashing facility for off-the-books payroll, resulting in a loss of workers’ compensation premium to NYSIF of approximately $195,000. “We are grateful to the Manhattan District Attorney for his assistance in this investigation,” NYSIF Chief Deputy Executive Director and Secretary to the Board of Commissioners Francine James stated. “Premium fraud is the most costly type of workers’ compensation fraud. It not only cheats NYSIF, but also places honest businesses at a competitive disadvantage and inflates the cost of goods and services for all consumers.” Mr. Ramos was charged with offering a false instrument for filing, filing false returns for personal income tax and earnings, and filing false corporate tax reports. Additionally, authorities charged the company, located in Medford, NY, Suffolk County, with filing false tax reports and offering a false instrument for filing. Criminal complaints and indictments are accusations only. Defendants are presumed innocent until proven guilty.