Insurance Fraud NEWS
Contractor in New York avoids buying comp for employees
June 21, 2018, Seneca County, NY
New York State Inspector General Catherine Leahy Scott today announced the guilty plea, restitution payment and fine of a Seneca County contractor on a felony Workers' Compensation charge for failing to provide required insurance coverage for his employees.
Steven Pollot, 37, of Waterloo, owner of D&S Home Improvements-Property Maintenance, pleaded guilty in Cayuga County Court to the Workers' Compensation crime of Failure to Secure Compensation, a felony. Concurrent with the guilty plea, Pollot paid $3,500 restitution to client homeowners and was separately sentenced to a $5,000 fine and a three-year conditional discharge.
An investigation by Inspector General Leahy Scott found that Pollot had never obtained Workers' Compensation coverage for employees of his business and during a 2015 siding and roof repair project at a Cayuga County home for which he employed seven people, not including himself. Pollot confirmed he had employees on the project. Under New York State law, employers are required to obtain Workers' Compensation coverage for anyone they employ.
“This contractor's fraud left his employees vulnerable and gave him a criminally unfair advantage over honest businesses,” said Inspector General Leahy Scott. “The State's Workers' Compensation system is vital protection for the state's workforce and I will pursue anyone who abuses it.”
Workers' Compensation fraud impacts all New Yorkers, from increased insurance premiums to increased workloads for coworkers and an overall reduction in workforce productivity.
Inspector General Leahy Scott thanked the New York State Police for their assistance with the investigation and arrest, and Cayuga County District Attorney Jon E. Budelmann and his office for assisting with the investigation and for prosecuting this matter.