His construction company allegedly cashed checks that far exceeded his reported payroll, and now a 30-year-old Lindenhurst, New York, man has been charged with workers’ compensation fraud.

Suffolk County District Attorney Thomas Spota’s Office arrested Justin Greenfield, owner of Greenfield Construction, on Dec. 15, charging him with fraudulent practices for violating the Workers’ Compensation Law, a felony. Mr. Greenfield’s arrest followed a joint investigation of Greenfield Construction by NYSIF’s Division of Confidential Investigations, the New York State Insurance Department Frauds Bureau, and the Workers’ Compensation Board Office of the Fraud Inspector General.

Investigators said Mr. Greenfield reported sales of $41,000 during a NYSIF audit for the period from May 2005 through May 2006, with no employees other than himself. The investigation found that during that same period, however, Mr. Greenfield allegedly received approximately $163,000 from another contractor that went unrecorded on Greenfield’s books. Allegedly, during that period, Mr. Greenfield also cashed approximately $379,000 in checks with a payroll company for undisclosed payroll of Greenfield Construction.

Investigators said Mr. Greenfield allegedly defrauded NYSIF in the amount of $98,898 in premium for the year from May ’05 – ’06, but investigators said he could owe NYSIF more than half a million dollars in unpaid premium.

NYSIF ultimately cancelled Mr. Greenfield’s policy for nonpayment in October 2007. Based on estimated audits for the period from 2005 to 2007, investigators said Mr. Greenfield failed to pay NYSIF approximately $567,000 in premium. Criminal complaints and indictments are accusations only. Defendants are presumed innocent until proven guilty.

Painted into a Felonious Corner

An Oneida County man who was injured 23 years ago while working as a painter for a Central New York cheese company has been charged with defrauding the New York State Insurance Fund which has been paying him workers’ compensation benefits since the 1986 accident.

David Bowers, 57, of Frankfort, New York, denied in three separate written statements to NYSIF that he had returned to work. An investigation was initiated by NYSIF’s Division of Confidential Investigations with the cooperation of the New York State Insurance Department’s Frauds Bureau and the Workers’ Compensation Board Inspector General’s Office. During the investigation, Bowers admitted he had been working as a disc jockey at Peepers, a strip club in Utica, for the past five years.

Bowers was arrested December 14 by Utica Police and charged with two felonies, insurance fraud, third degree and fraudulent practices, with the alleged crimes taking place from January through December of 2009. During that time Bowers received nearly $3,600 in wage replacement benefits to which he was not entitled. It is alleged that Bowers not only misrepresented his return to work but also his physical capabilities and condition.

“This case underscores an important element of what makes workers’ compensation fraud so expensive,” said Francine James, NYSIF Chief Deputy Executive Director. “This case has gone on for 23 years and could have continued for many more had our people not been vigilant. The potential for this case is estimated at $46,815.

Criminal complaints and indictments are accusations only, a defendant is presumed innocent until proven guilty.