Tuesday, September 15th, 2026 — A Suffolk County asbestos removal company and its owner have been charged with workers’ compensation insurance fraud after investigators alleged the business misrepresented its payroll, workforce and occupational risks to obtain a lower insurance premium.
The Suffolk County District Attorney’s Office said the alleged misrepresentations resulted in $163,561 in underpaid workers’ compensation premiums. The defendants have been charged with Penalties for Fraudulent Practices and Effect of Failure to Secure Compensation, both Class E felonies. The charges are allegations and have not resulted in convictions.
According to prosecutors, the company applied to Wesco Insurance Company for workers’ compensation coverage in March 2023 for a policy period running from April 2023 through April 2024. The application allegedly reported one full-time building service contractor and annual payroll of $50,000. Wesco issued a policy with an annual premium of $4,203 based on the information submitted.
An investigation by the Offices of the New York State Inspector General later examined the company’s asbestos-related activities. Investigators determined that the business had obtained a New York State Department of Labor asbestos license or certification and had filed multiple asbestos project notifications.
Prosecutors allege those records showed the company was performing asbestos abatement work that carried greater occupational hazards and required workers’ compensation coverage classified for that work. Investigators also determined that the business employed multiple workers during the year and had annual payroll of $354,112, according to the district attorney’s office.
The difference between the information allegedly supplied to the insurer and the figures identified during the investigation is central to the criminal case. Workers’ compensation premiums depend in part on payroll and the classifications assigned to the work employees perform. For claims and insurance professionals, accurate classifications are particularly significant when employees perform hazardous work such as asbestos abatement.
The owner and company were arraigned Sept. 9 before Suffolk County District Court Judge Alonzo G. Jacobs. The owner was released on his own recognizance, and the defendants were scheduled to return to court Sept. 21.
The case is being prosecuted by the Suffolk County District Attorney’s Financial Crimes Bureau. The investigation involved the district attorney’s Detective Investigation Unit and the Offices of the New York State Inspector General.
