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A.G. Schneiderman Announces Sentencing Of NYS Department Of Transportation Employee In Workers’ Compensation Fraud Case

Corey Cragnolin Resigned From Position, Will Repay Nearly $10K In Fraudulently-Obtained Worker’s Compensation Benefits

Schneiderman: We Will Work To Root Out Workers’ Compensation Fraud And Prosecute Those Responsible

ROCHESTER – Attorney General Eric T. Schneiderman today announced the sentencing of Corey Cragnolin, a New York State Department of Transportation employee, for fraudulently obtaining nearly $10,000 in Workers’ Compensation Benefits over a period of approximately eight months.  Cragnolin was sentenced in Rochester City Court by the Honorable Caroline Morrison to three years of probation.  As a condition of probation, Cragnolin must also pay $9,940.49 in restitution to cover the costs of the Workers’ Compensation Benefits that he received but was not entitled to, and forfeit any future wage replacement workers’ compensation benefits related to the workers’ compensation claim at issue. 

“Stealing from a program that helps hardworking New Yorkers who have been hurt on the job is reprehensible, and I’m glad to see that justice was served in this case,” Attorney General Schneiderman said. “My office will keep working to root out Workers’ Compensation fraud and prosecute those responsible to the fullest extent.”

“This former State employee stole from system meant to assist those who cannot work because of an illness or injury,” said Inspector General Leahy Scott. “I will continue to use the resources of my office to pursue any person who unconscionably takes advantage of the Workers’ Compensation system at the expense of honest, hard-working New Yorkers.” 

Cragnolin entered a plea of guilty on November 4, 2015 to the charge of Attempted Fraudulent Practices, a class “A” misdemeanor before the Rochester City Court Judge Caroline Morrison.  Today, in addition to the sentence, Cragnolin has resigned from his position with the Department of Transportation.

According to the original complaint and his admissions at the time of his plea, Cragnolin falsified documents that he submitted to the New York State Insurance Fund, by stating on those documents that he was not working in any capacity while accepting Workers’ Compensation Benefits, when he was, in fact, working.  Between September 2013 and May 2014, Cragnolin received Workers’ Compensation Benefits for an injury he claimed he suffered while at work.  Cragnolin received those benefits in part because he claimed he could not work due to his injury.  The charge filed against Cragnolin details that during this time period Cragnolin was running his own home improvement and contracting business, which included repairing roofs, cleaning and repairing chimneys, cleaning and repairing gutters, among other projects.  Despite running and working at his own home improvement and contracting business, Cragnolin claimed on at least five forms that he submitted to NYSIF, as required for his Workers’ Compensation case, that he was not working in any capacity.  Because of these false representations, Cragnolin received $9,940.40 in Workers’ Compensation Benefits to which he was not entitled.     

The joint investigation was conducted with Investigative Counsel Katie McCutcheon and Investigator Dale Richter of the New York State Office of the Inspector General and former Senior Investigator of the New York State Insurance Fund, Thomas Wall.

This case was prosecuted by Assistant Attorneys General Mary Gorman and Daniel Bajger of the Attorney General’s Public Integrity Bureau.  The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz.  The investigation was handled by Investigator David Buske of the Investigations Bureau, with support from Investigator Richard Doyle, Deputy Bureau Chief Antoine Karam, and Bureau Chief Dominick Zarrella.  Executive Deputy Attorney General Kelly Donovan leads the Criminal Justice Division.

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