NYC Restoration Contractor Faces Multiple Fraud Charges

The Office of Manhattan District Attorney Cyrus R. Vance, Jr., charged Michael Connolly with three counts each of insurance fraud, falsifying business records and criminal possession of a forged instrument – all felonies – following his arrest on May 3.

Mr. Connolly was hired as a sub-contractor to do work for a NYSIF policyholder. Investigators from NYSIF's Division of Confidential Investigations said Mr. Connolly allegedly submitted three fraudulent certificates of insurance, listing American International Group as the workers' compensation insurance provider for his company, Superior Drywall and Acoustics Ceilings, at 314 East 34th Street, New York, NY.

“Workers' compensation certificate fraud exposes unsuspecting certificate holders to increased costs for insurance and increased liability for unprotected workers in the event of an accident,” NYSIF Chief Deputy Executive Director Francine James said. “All contractors and sub-contractors working in New York State must have a valid certificate of workers' compensation insurance to prove coverage.”

The alleged fraudulent certificates left NYSIF's policyholder liable for approximately $6,622 in unpaid workers' compensation premium, investigators said.

The New York State Insurance Department Frauds Bureau and the Office of the Workers' Compensation Board Fraud Inspector General assisted in the investigation.

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

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