ALBANY, N.Y., August 3 – A Suffolk County trucking company owner has pleaded guilty to attempting to defraud the New York State Insurance Fund (NYSIF) by applying for workers compensation coverage insurance under false pretenses.

According to NYSIFs Division of Confidential Investigations, Rita Schultz of Holbrook, filed an application for workers compensation coverage for her company, A & J Trucking, in November 2004, however she failed to disclose her relationship with a prior business, A & J Crane, which owed NYSIF $32,643 in outstanding premium on a cancelled policy. Investigators said they found that Schulz was an officer of both businesses, and that her new business, A & J Trucking, was merely a continuation of the prior business, A & J Crane.

This case sends a clear message to employers who think they can get away with cheating the workers compensation system, NYSIF CEO David P. Wehner said. We train our people to spot application fraud. We have seen time and again how unscrupulous employers attempt to cheat the system by lying on their applications for insurance or not carrying any compensation insurance at all. Fortunately these violations are coming under closer scrutiny with the new workers compensation reforms.

Schulz received a one-year conditional discharge as she entered a guilty plea on July 24 for attempting to violate Section 114 of the Workers Compensation Law, a misdemeanor. Additionally, she paid $32,643 in restitution.