Magnifying Glass
Back to Sponsored Content

NYSIF Helps Feds In Premium Fraud/Tax Fraud Prosecution

04 Aug, 2009 WorkersCompensation.com

                               
New York, NY (CompNewsNetwork) - New York State Insurance Fund Executive Director James J. Wrynn expressed his gratitude to federal law enforcement authorities in cracking a workers' compensation premium fraud case that landed a Queens businessman in prison for more than three years and won a judgment of restitution of more than $1 million for NYSIF.

Executive Director Wrynn also congratulated NYSIF's Division of Confidential Investigations (DCI) for its work in the case announced last week by United States Attorney for the Northern District of New York Andrew Baxter.

NYSIF investigators from New York City and Syracuse DCI units worked in cooperation with federal authorities leading to the arrest of Chong Mun Chae, 71, of Sunnyside, Queens, NY, who pleaded guilty to mail and tax fraud, and was sentenced to 46 months in prison by U.S. Senior District Judge Thomas J. McAvoy, followed by two years of supervised release.

“I want to express my appreciation for the arrest, conviction and sentencing in this case, and specifically for the efforts of U.S. Attorney Baxter,” Mr. Wrynn said. “NYSIF anti-fraud investigators worked diligently on issues involving premium fraud against NYSIF and, in cooperation with federal investigators, helped the build the case that brought this individual down.”

As part of the plea, Mr. Chae was ordered to pay NYSIF restitution of $1,067,265 for defrauding the Fund on workers' compensation premium.

As part of his scheme, Chae owned and operated several companies including Charlie Brown Services, Inc., Top Ace Services, K-One Service, Inc., and other names that he periodically altered.

Chae provided numerous laborers to various companies for asbestos removal work. However, when he applied for workers' compensation policies, he falsely claimed that he had only a single employee who worked as a receptionist or, depending on the policy, some other unrelated, non-hazardous job. By concealing the true number of employees and the hazardous nature of their work, Chae paid significantly lower premium rates for workers' compensation insurance.

Chae allegedly also failed to report substantial income from his businesses and was ordered to pay all taxes owed to the United States in an amount to be determined by the Internal Revenue Service.

A citizen of South Korea who has been in the United States illegally for decades, Chae will be deported after he finishes his federal prison term and, if he returns to the United States, he will be returned to federal prison to serve additional jail time.

This case was investigated by Special Agents of the United States Environmental Protection Agency and the Internal Revenue Service together with investigators from NYSIF. The case was prosecuted by Assistant United States Attorney Craig A. Benedict.

NYSIF is a competitive insurance carrier that sells workers' compensation and disability benefits insurance to any employer doing business in New York State. Approximately 185,000 employers hold NYSIF workers' compensation insurance policies, approximately 37 percent of the market.

    • Read Also

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]

    About The Author

    • WorkersCompensation.com

    More by This Author

    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    ReEmployAbility Announces Free Webinar: ‘Overcoming Jurisdictional Return-to-Work Challenges’

    ReEmployAbility, Inc.Contact: Rebecca Dearth(813) 261-3117 | news@reemployability.com Brandon, FL (May 10, 2023)- ReEmployAbility CEO and Founder Debra Livingston will be hosting a second free, live Work Comp Central webinar in their continued series to educate […]
    NCCI Annual Golf Event Tees Up $25,000 for Kids’ Chance of America

    (Orlando, FL–May 10, 2023)—The National Council on Compensation Insurance (NCCI) has given $25,000 to Kids’ Chance of America, supporting college scholarships for the children of injured workers. NCCI made the donation in conjunction with its Annual […]

    Read More

    IOH Announces Appointment of Scott Strickland as Chief Operating Officer (COO) 

    SAN DIEGO, CA — July 1, 2024 — Institutes of Health (“IOH”), a leading transdisciplinary Workers’ Compensation treatment organization focused on patients suffering from complex and chronic conditions, is delighted to announce the appointment of […]
    Rising Medical Solutions Becomes Bronze Associate Partner of WorkCompCollege.com 

    Lakewood Ranch, FL (July 2, 2024) – WorkCompCollege.com, a division of Workers’ Compensation Educational Services, LLC, has announced a Bronze Associate Partnership with Rising Medical Solutions (Rising). Their mission to “make lives better” is consistent […]
    The Key Role of a Workers’ Comp Case Manager 

    Close attention through the claim lifecycle ensures the best claimant outcomes   In the world of workers’ compensation, where endless variables seem to be at play, Horizon Casualty Services, Inc., (HCS) acknowledges that having a clear […]
    Ametros’ Melissa Coleman Honored by the IAIABC as a 2024 NextGen Winner

    Wilmington, Mass. (June 24, 2024) – The IAIABC has recognized Melissa Coleman as a 2024 NextGen Award Winner. Coleman is the Senior Vice President of Marketing for Ametros, which helps people manage their medical funds following workers’ […]
    PhysNet Achieves Fifth Consecutive Year of SOC 2 Type II Certification

    Jacksonville, FL, June 3, 2024 – PhysNet proudly announces its attainment of SOC 2 Type II compliance for the fifth consecutive year, reinforcing its commitment to providing enterprise-level security for customer data within its cloud-based […]
    WorkCompCollege.com Welcomes Alistair Ienstein as New Academic Innovator 

    June 20, 2024 – WorkCompCollege.com is thrilled to announce the appointment of Alistair Ienstein as its new Academic Innovator. Alistair, a unique and revolutionary AI presence, is poised to transform the learning experience for students […]

    Request a Demo

    To request a free demo of one of our products, please fill in this form. Our sales team will get back to you shortly.