Bogus Certificate Leaves Legit Company Holding The Bill

New York, NY (CompNewsNetwork) - A Dutchess County contractor has been arrested for allegedly passing a fraudulent workers' compensation insurance certificate, leaving a legitimate Hudson Valley construction company holding the bill for more than $4,000 in extra premium payments.

The contractor, Kurt Grove, of Hopewell Junction, NY, faces changes of possession of a forged instrument and insurance fraud following his arrest by officers of the Dutchess County Sheriff's Department on October 27.

Investigators said Mr. Grove allegedly submitted a forged Accord Certificate to gain work as a sub-contractor for Mid-Hudson Construction Management, Inc., a New York State Insurance Fund policyholder. Mr. Grove's alleged actions left NYSIF's policyholder liable for the gap in coverage, causing Mid-Hudson Construction to be re-billed more than $4,000 in additional premium.

NYSIF's Division of Confidential Investigations conducted the investigation in cooperation with the New York State Insurance Department Frauds Bureau, the Workers' Compensation Board Fraud Inspector General's Office, and the Dutchess County District Attorney's Office.

“Unfortunately, certificate fraud is one of the most prevalent types of workers' compensation fraud and can wind up being costly for honest, unsuspecting businesses that accept bogus certificates,” NYSIF Executive Director David. P. Wehner said.

Mr. Wehner reminded businesses and the general public that anyone accepting a NYSIF certificate can go online at nysif.com to instantly validate the authenticity of NYSIF certificates.

Criminal complaints and indictments are accusations only. Defendants are presumed innocent until proven guilty.

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