Issue:  2006-10-19

Queens Fraud Sweep Nets Nine

ALBANY, N.Y., October 19 – A fraud sweep conducted by Queens District Attorney Richard Browns Office has resulted in the arrests of nine individuals who allegedly committed workers compensation fraud, according to NYSIF CEO David P. Wehner.

Authorities said the nine suspects committed fraud against NYSIF totaling close to $400,000, including Norman Berger, who allegedly collected $178,000 in workers compensation benefits intended for a woman with whom he had been living who died in 1990. Investigators said Berger never notified NYSIF that the beneficiary had passed away.

Also arrested were business owners: Joseph Brunetto (JBC Electrical Construction), of Manhattan; Sonia Garcia and Viliulfo Garcia (Java Waterproofing), of Long Island City; Ofer Herman (All American Hardwood Flooring), of Astoria; Mario Koutsoubis (J&K Painting), of Astoria; Nick Neuroliatsos (NGC International), of Whitestone; Tomas Olazabal (F&A Contractors), of Fresh Meadows; Senad Otovic (Focus Interior Painting), of Brooklyn; and claimant Willington DeLaGuarda, who allegedly was videotaped working, but was collecting workers compensation while denying he had returned to work.

The defendants have been variously charged with grand larceny, insurance fraud, falsifying business records, offering a false instrument for filing, and violations of the Workers Compensation Law.

NYSIF is grateful for the support we receive from law enforcement authorities such as Queens DA Richard Brown, the New York State Insurance Department Frauds Bureau, and the workers compensation fraud inspector general, Wehner said. With their continued support, we will continue to carry out our mandate and our responsibility in the fight against fraud.

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