A Suffolk County woman who pleaded guilty to attempted insurance fraud received three years’ probation and will pay the New York State Insurance Fund (NYSIF) $34,000 in restitution. In entering her guilty plea in Suffolk County Court on June 14, 2010, Carol Mitchell, 51, of Central Islip, NY, also signed an agreement waiving any future benefits for her workers’ comp claim in a case jointly investigated by NYSIF’s Division of Confidential Investigations and the New York State Insurance Department Frauds Bureau. The investigation led to Ms. Mitchell’s arrest in 2009 by the Suffolk County District Attorney’s Office for violating the Workers’ Compensation Law, a felony. Investigators said Ms. Mitchell filed a claim for workers’ compensation in 1993 after reporting an injury to her hip while working as a food service employee. The investigation found that Ms. Mitchell allegedly worked as an office manager for a tree company in Islip Terrace while collecting workers’ comp. benefits from NYSIF. As a result of closing her claim, NYSIF estimated the savings in Ms. Mitchell’s case to be approximately $161,000.

NYSIF “Hammers” Husband, Wife Team

NYSIF Chief Deputy Executive Director Francine James announced the indictment of a Long Island couple on charges of defrauding NYSIF of $290,000 for workers’ comp coverage for their demolition and cleaning business. Joseph DiNapoli, 51, and his wife, Maria, 39, of Kings Park, NY, face felony charges of fraudulent practices and falsifying business records following their arrests by the Suffolk County District Attorney’s Office on June 15, 2010. An investigation by NYSIF’s Division of Confidential Investigations, the NYSIF Frauds Bureau and Suffolk County DA Thomas Spota’s Insurance Crime Bureau led to the indictment that alleges the DiNapolis gave NYSIF false information during insurance audits of their business, J&D Home Cleanups, in 2006 and 2007. Investigators said the business is engaged in roofing and demolition work, but that the DiNapolis allegedly misrepresented themselves as cleanup contractors for debris at demolition sites of other contractors. They allegedly also falsely gave their business location as upstate Jefferson, NY, rather than Kings Park, which further resulted in paying a lower workers’ comp. premium. NYSIF cancelled the policy in November 2007 with the DiNapolis allegedly owing NYSIF $290,000 in uncollected premium.

Criminal complaints and indictments are accusations only. Defendants are innocent until proven guilty.