ALBANY, N.Y., May 10 – A Long Island insurance broker and a New Jersey contractor have been arrested in similar, but separate cases of workers compensation insurance fraud, according to the New York State Insurance Fund (NYSIF).

The broker, Wayne Loeffler, is the owner of FSC Insurance Agency Brokerage in Melville, and is accused of offering proof of insurance on behalf of a client that he knew to be false.

According to NYSIF, Loeffler presented a forged document to a NYSIF policyholder who in turn offered the document to NYSIF as proof that his sub-contractor had workers compensation insurance. NYSIF maintained that no coverage existed, and stated that Loeffler had applied for a policy with NYSIF on behalf of his client, but the application was denied. He allegedly admitted to NYSIF investigators that he knew the application had been denied and still issued the fraudulent proof.

While this case is somewhat unusual, it clearly points out that fraud can be and is committed by brokers who, in doing so, put their license and livelihood at risk, said NYSIF Department of Confidential Investigations director Laurence LaPointe. It also underscores the importance of verifying any document purporting to show proof of insurance.

In the second case, Michael Savino, the owner of Horizon Contracting Company of Staten Island and a resident of Manalapan, New Jersey, was arrested on April 27 for submitting forged certificates of insurance to a NYSIF policyholder. The policyholder had hired Savinos company as a sub-contractor, NYSIF said, and the certificates allegedly presented by Savino indicated Horizon had a valid workers compensation policy when in fact no such policy existed.

Savino pleaded not guilty at arraignment to charges of insurance fraud, falsifying business records, and offering a false instrument for filing as contained in an indictment returned by a Richmond County grand jury.