Wayne County Resident Indicted For Insurance Fraud
Spitzer Alleges Dozens of False Workers' Compensation Claims Submitted to Insurance Fund
Attorney General Spitzer and Kenneth Ross, Executive Director of the New York State Insurance Fund (NYSIF), today announced that a Monroe County Grand Jury has indicted a Wayne County man for attempting to defraud the New York State Workers' Compensation System.
The defendant, Mark P. Boerman, 39, is the former principal owner of Executive Resources, Inc., d/b/a, PAYFORCE, a Palmyra-based business providing temporary employees in the Rochester area in capacities ranging from office support to landscaping.
The 38-count indictment alleges that during a five-month period beginning in August 2000 the company failed to provide workers' compensation insurance for its employees. This type of insurance protects workers by paying lost wages and medical bills when they suffer injuries on the job. During that time period, 18 employees of PAYFORCE suffered work-related injuries.
It is alleged that Boerman submitted false documents to the State Insurance Fund and the New York State Workers' Compensation Board claiming that the employees were working for a second company, American Staff Management, Inc., also owned by the defendant, and directed injured workers to do the same, in an effort to defraud the NYSIF. It is estimated that claims totaling $1,458,452 were fraudulently submitted to the fund.
"Workers are entitled to be compensated for lost wages and medical expenses when they are injured on the job, but business owners are not entitled to distort the facts in an effort to cut costs," said Spitzer. "My office is committed to protecting the integrity of our insurance system. I commend the State Insurance Fund for recognizing and responding to this situation with its initial investigation and for its cooperation with my office."
SIF Director Kenneth Ross said: "NYSIF is an industry leader in arrests and prosecutions for workers' compensation fraud. That includes anyone who commits fraud against the system - policyholders, medical providers and claimants. This demonstrates to employers who do business with NYSIF and want to take advantage of the workers' compensation system that we are serious about policyholder fraud. If you are a policyholder and you commit fraud, we will investigate you, we will catch you and work with law enforcement to prosecute you to the full extent of the law."
Boerman, of 3596 Newark Road, in the town of Marion, was indicted on November 21, by a Monroe County Grand Jury on 19 separate counts of Workers Compensation Insurance Fraud; and 19 counts of Offering a False Instrument for Filing in the First Degree, all counts are class "E" felonies. Boerman entered a not-guilty plea, on December 4, before Monroe County Court Judge Patricia D. Marks and was released. If convicted, Boerman could face up to four years in state prison.
The charges are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case is being handled by Assistant Attorney General Paul McCarthy, New York State Police Investigator Paul DiCillis and Senior Investigator Robert Davis, Division of Criminal Investigation, SIF.