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State Agencies Combat Fraud

December 13, 2011

Benjamin M. Lawsky, superintendent of the Department of Financial Services, announced last week that 18 people in 13 New York counties have been arrested in the latest effort to save businesses money by cracking down on workers’ compensation fraud.

The arrests were the result of a series of joint investigations led by the Department of Financial Services (DFS). Joining DFS in the investigations were the Office of the Inspector General (OIG) of the New York State Workers' Compensation Board, the New York State Insurance Fund (NYSIF) and other insurers. NYSIF referrals and casework accounted for 13 of the 18 arrests.

NYSIF arrests included:

Albany County -- Charles Foster, 48, of Hoosick Falls, collected $22,800 in benefits after hurting his leg when cutting down a tree while employed by the Village of Hoosick Falls in February 2010. However, investigators found that he was allegedly managing a storage facility and running a scrap metal business while collecting the benefits from NYSIF. He is charged with workers’ compensation fraud.

Schenectady County -- Lee Kittle, 49, of Scotia, collected $22,600 in compensation from NYSIF after suffering an injury while employed at a mill in 1993. He was allegedly found to be working at Schenectady County Community College as a tutor and the Saratoga Race Track as a teller. He gave authorities a written confession. He is charged with offering a false instrument for filing in the first degree and workers’ compensation fraud.

Erie County – John Czechowski, 45, of West Seneca, collected $12,000 from NYSIF after he was classified as totally disabled for a back injury he suffered working as a roofer. However, investigators discovered he was allegedly working off the books for a contracting company while collecting the benefits. He is charged with third degree insurance fraud, grand larceny, offering a false instrument for filing and workers’ compensation fraud.

Onondaga County -- Kemberlei Senke, 44, of Liverpool, is accused of claimant fraud for collecting $26,000 in benefits issued by NYSIF between June 2009 and January 2011. She reported suffering a knee injury while employed by Artistry in Wood. The investigation disclosed that she allegedly falsified reports to the NYSIF to inflate her wages and employment status. She is charged with insurance fraud in the third degree, offering a false instrument for filing in the first degree and workers’ compensation fraud.

Onondaga County -- Cheryl LaQuay, 62, of Calcium, is accused of fraudulently collecting $53,000 in benefits from the NYSIF between Oct. 2006 and Sept. 2011, while allegedly working as a home health aide. She is charged with insurance fraud in the second degree, offering a false instrument for filing in the first degree and workers’ compensation fraud.

Oneida County -- William Ellis, 43, of Utica, admitted working for a construction company from 2004 through 2007 doing roofing, siding, plumbing and masonry while collecting $15,000 in benefits from NYSIF for an injury he suffered while working for a paving and excavating company in 1993. 

Ulster County -- Sergio Cortez, 37, of Rosendale, collected $6,800 in benefits from NYSIF after claiming he suffered a slip and fall injury while working as a carpenter for ABD Stratford LLC in September 2009. However, investigators found that he was allegedly working as a landscaper while collecting benefits. He is charged with insurance fraud in the third degree and workers’ compensation fraud.

Ulster County -- Willie Dixon, 47, of New Paltz, collected benefits from NYSIF for an injury he reportedly suffered while working for the New York State Office of Family and Children Services in May 2010. An investigation revealed he allegedly failed to disclose on work activity reports that he was employed as a coach while collecting $4,700 in benefits. He is charged with insurance fraud in the third degree and workers’ compensation fraud.

Otsego County -- Susan Gridley, 61, of Schuyler Lake, started collecting benefits after an injury she sustained while working at a horse farm in 1986. She later allegedly failed to disclose on work activity reports submitted to the NYSIF that she was working as horse boarder and trainer while collecting $4,700 in benefits.

Oswego County -- Kimberly Harrington, 53, of Lacona, is accused of cashing her dead husband’s workers’ compensation benefit checks totaling $2461.90. The checks were issued by the NYSIF. She is charged with grand larceny in the fourth degree.

Chenango County – Patricia Wilcox, 60, of Oxford, started collecting benefits from NYSIF after claiming she suffered a broken ankle while working as a teacher’s aide at the Chenango County Head Start program. Investigators found that her injury actually occurred at her home. She allegedly fraudulently collected $12,900 in benefits. She is charged with falsifying business records in the first degree and workers’ compensation fraud.

Tompkins County – Steven Odum, 65, of Ithaca, is accused of failing to disclose work activity as the lead guitarist with the “Steve Odum Trio” on reports he sent to the NYSIF while collecting $11,300 in benefits after suffering an injury in 1988 while working at a residential child care institution. He is charged with offering a false instrument for filing in the first degree and workers’ compensation fraud.

Broome County – Olga Shelestovsky, 43, of Johnson City, is accused of working as a waitress while collecting $2,200 in benefits from NYSIF and claiming that she was unable to do any physical work. She is charged with offering a false instrument for filing in the first degree and workers’ compensation fraud.

Criminal complaints and indictments are accusations only. All defendants are presumed innocent until proven guilty.