November 4, 2005

DILLON ANNOUNCES:

ARREST OF THREE INDIVIDUALS FOR INSURANCE FRAUD

Nassau County District Attorney Denis Dillon announced today that the DA’s Criminal Frauds Bureau has arrested three individuals who collected workers’ compensation benefits totaling more than $76,939 that they were not entitled to receive.

"Working with the New York State Insurance Department, the New York State Insurance Fund, and the Inspector General of the New York State Workers Compensation Board, my office brought charges against three people for fraudulently claiming $76,939 in Workers’ Compensation benefits," said Dillon.

"Far from being a victimless crime," Dillon continued, "insurance fraud is a crime against consumers, who pay the price when they take out a policy and pay the premium. It’s estimated that insurance fraud is costing the average American family over $1,650 each year in increased premiums and taxes."

"These particular crimes point up the widespread problem of workers' compensation fraud in that they cut across a variety of industries in which workers, some classified as 'permanently disabled,' filed claims for work-related injuries and then at some point returned to work while continuing to collect benefits illegally. This is an example of the type of 'double dipping' that drives up the cost of workers' compensation insurance for everybody," NYSIF acting co-executive directors Christopher Barclay and Douglas Hayden said in a joint statement.

Barclay and Hayden continued, "In this instance alone, just a handful of dishonest claimants would account for a tab passed on to consumers in actual fraud and estimated future benefit payments of more than $332,000, all while gainfully employed and collecting salaries. It must stop. Those who commit these felonies must be brought to justice. The New York State Insurance Fund, through the assistance of officials such as Nassau County District Attorney Denis Dillon and other law enforcement authorities, is committed to holding accountable to the fullest extent of the law any individual, business or medical provider found guilty of felony workers' compensation fraud."

The following defendants have been charged:

Workers Compensation Fraud

Solomon Sorto, 45, of 188 Kinkle Avenue, Westbury. In March of 1994, Sorto was awarded Workers compensation benefits as a result of a work related back injury. He was awarded benefits at the rate of $130 per week. These benefits continued until September of 2005. During this period of time, Sorto repeatedly certified that he had not returned to work. However, from October 1998 to September of 2005, Sorto worked as a building maintenance worker for A.M. Holding Corporation, a building management company, earning approximately $22,000 to $29,000 per year. He failed to report this employment to the New York State Insurance Fund, thereby fraudulently collecting approximately $47,554 in lost wage benefits to which he was not entitled. Sorto has been charged with Insurance Fraud in the Third Degree, a Class D Felony, and Offering a False Instrument for Filing in the First Degree, a Class E Felony. He faces up to seven years in prison if convicted.

Ellen Fennessy, 46, of 302 10th Street, West Babylon. Fennessy filed a workers’ compensation claim in 1984. This claim was filed as the result of an injury that occurred while she was working at Daleview Nursing Home. As a result of this claim, Fennessy received $125 a week in wage replacement from May 6, 1991 through the present. Between May 2004 and August 2005, Fennessy returned six work attestations to the New York State Insurance Fund, that indicated she had not worked since the accident in 1984. In reality, Fennessy worked for J&R Meat Farms, 68 Motor Avenue, Farmingdale from January 2004 through January 2005. She also worked at Sav-Way Fuel and Oil company, 269 Union Boulevard, West Islip from January 2005 through August 2005. While she was employed at these locations, she continued to collect workers’ compensation benefits. She fraudulently collected $17,625 from the New York State Insurance Fund while she was employed. Fennessy with three counts of Offering a False Instrument for Filing in the First Degree and one count of Workers’ Compensation Fraud, both Class E Felonies, punishable by up to four years in prison.

Dion Lonigro, 40, of 600 Conklin Street, Farmingdale. Lonigro claimed to have injured his back and right knee while employed as a driver for Long Island beverage Company. He applied for workers’ compensation benefits. On September 12, 2003, he was classified as temporarily partially disabled. He was authorized to receive benefits of $300 per week. Lonigro could have worked and made up to $150 per week while maintaining his full workers’ compensation benefits. Lonigro repeatedly reported he was not working. In reality, he was working as a painter and making more than $150 a week. Video surveillance shows that Lonigro was working from March 2004, through January 2005. He never reported he was working and collected approximately $11,760 in benefits during the period he was employed. According to his boss he made approximately $330 per week. Lonigro has been charged with three counts of Offering a False Instrument for Filing in the First Degree and one count of Workers’ Compensation Fraud, both Class E Felonies.

"As Governor Pataki proposes a new comprehensive package of workers' compensation reforms to help employers reduce costs, these arrests provide the people of New York with a strong reminder that we must remain vigilant in our fight to eliminate fraud," Workers' Compensation Board Fraud Inspector General John H. Burgher said. "We compete with every other region for employers to stay or set up shop in our state. By reducing fraud we will continue to make New York an attractive environment for employers while preserving the rights of legitimately injured workers."

"These individuals were allegedly engaging in fraudulent activities that contribute to higher insurance premiums for all New Yorkers," said New York State’s Superintendent of Insurance Howard Mills. "The New York State Insurance Department’s Frauds Bureau will continue to work closely with the Nassau County District Attorney’s Office and we applaud today’s news because fraud is a pervasive crime that requires a sustained, statewide effort to combat."

The defendants will be arraigned today in First District Court, Hempstead. The charges are merely accusations, and the defendants are presumed innocent until and unless proven guilty.