Five Charged in Worker’s Comp/Disability Fraud Sweep

Suspects received more than $97K in undeserved benefits

MINEOLA, NY – Nassau County District Attorney Kathleen Rice announced today that five Nassau County residents have been charged with defrauding insurance companies of more than $97,000 Worker’s Comp/Disability benefits fraud

These charges are a direct result of an investigation by the Nassau County District Attorney’s Office, the New York State Insurance Department, New York State Insurance Fund (NYSIF) and the New York State Workers Compensation Board, Office of the Inspector General.

“Worker’s Compensation and Disability benefits are intended for those members of society who are too sick or injured to work, not those devious enough to try to beat the system,” Rice said. “These five have chosen to abuse a system set up to help those in need, and will now face the consequences of their choices”

Charged in the sweep is:

• Carmalina DiGraci, 34, of Glen Cove is charged with Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Falsifying Business Records in the First Degree and Criminal Possession of a Forged Instrument in the Third Degree. DiGraci submitted falsified disability claim documents stating she suffered from dizziness, allergies, a sore throat and heart palpitations, as well as documentation from her doctors that she suffered from Laryngopharyngeal reflux and would need six months to recover. An investigation revealed that the notes were falsified and her doctors did not recommend she go on disability. She fraudulently collected $37,750 in benefits. She was arrested Dec. 4, is due back in court Jan. 23 and is represented by Taub Asher, Esq.
• Vincenzo Papasidero, 66, of Glen Cove is charged with Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Offering a False Instrument for Filing in the First Degree, Falsifying Business Records in the First Degree, and Penalties for Fraudulent Acts. Despite being classified as permanently partially disabled, Papasidero was observed installing a Jacuzzi, carrying building materials, pushing a cart loaded with garbage cans and carrying granite slabs. Papasidero fraudulently collected $22,320 in benefits. He was arrested Dec. 4, is due back in court Jan. 27 and is represented by Robert Gottlieb, Esq.
• Robert Woodhouse, 59, of Franklin Square is charged with Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Offering a False Instrument for Filing in the First Degree, Falsifying Business Records in the First Degree, Perjury in the First Degree, Penalties for Fraudulent Practices, and Penalties for Fraudulent Acts. Woodhouse sustained injuries to his knee, elbow and hip while working as an exercise jockey at Belmont Racetrack in January 2003. Over the next two-and-a-half years, Woodhouse submitted to his insurance carrier 17 certification letters stating that he was not working, when he was, in fact, working for a consulting firm. Woodhouse collected $31,654 in fraudulent disability payments. He was arrested Dec. 3, is due back in court Jan. 15 and is represented by Theodore Robinson, Esq.
• Thomas Saccende, 50, of Elmont is charged with Penalties for Fraudulent Acts, Offering a False Instrument for Filing in the Second Degree, Falsifying Business Records in the Second Degree, and Perjury in the Second Degree. Saccende was classified permanent partially disabled after suffering a heart attack in November 2002. Saccende failed to report that he had returned to work at a casket company, despite earning less than the allowable weekly amount. Saccende was arrested Dec. 3, is due back in court Jan. 9 and is represented by the Legal Aid Society of Nassau County.
• Anne Cozzette, 46, of Long Beach is charged with Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Falsifying Business Records, and Penalties for Fraudulent Practices. Cozzette was classified as permanently partially disabled after suffering a back injury while working at a liquor store. Cozzette was found to be working at Edible Arrangements locations in Rockville Centre and Babylon, a violation of her disability. She fraudulently collected $5,865 in benefits. A warrant has been issued for her arrest.

“The New York State Insurance Fund is grateful for the cooperation of its brethren agencies and law enforcement officials such as Nassau District Attorney Kathleen Rice in the fight against workers’ compensation fraud,” said NYSIF Executive Director David P. Wehner said. “Fraud is not a victimless crime, its a billion dollar industry. We remain busy all year bringing fraud criminals to justice and saving millions of dollars for New York State, but we need the public’s help to continue the fight.”

“These arrests prove that governmental agencies combat fraud most effectively when joining forces,” said Steven Nachman, the New York State Insurance Department’s Deputy Superintendent for Frauds. “In particular, we commend the District Attorney and her staff for their work in making these arrests. Those who abuse the workers’ compensation system -- a program created to compensate honest individuals who are legitimately injured on the job -- must be held accountable,” said Steven Nachman, the New York State Insurance Department’s Deputy Superintendent for Frauds.

"Claimant fraud is troubling because some people use it to question the legitimacy of truly injured workers,” said Zachary S. Weiss, Chair of the Workers' Compensation Board. “People who are hurt at work must have faith that they will get the compensation they need, and that those who would defraud the system feel the weight of the law.”

These cases are being handled by Assistant District Attorney Victoria Curran of the DA’s Government & Consumer Frauds Bureau.

The charges against these defendants are merely accusations and the defendants are presumed innocent until and unless proven guilty.