Painter Has Brush With Fraud Charges

New York, NY (CompNewsNetwork) - A Suffolk County man used what he portrayed to be a small painting business as a facade to allegedly cover up a larger painting operation that cheated the New York State Insurance Fund out of thousands of dollars in workers' compensation premium.

Detective from the Suffolk County District Attorney's Office arrested Jorge Fernando Lupercio, 39, of E. Hampton, NY, on October 17, charging him with violating the Workers' Comp. Law as a felony.

The arrest resulted from an investigation by NYSIF's Division of Confidential Investigations in conjunction with the New York State Insurance Department Frauds Bureau, the Workers' Compensation Board Fraud Inspector General and the Suffolk County DA's Office.

"Cheating on workers' compensation premium is one of the most costly types of fraud," NYSIF Executive Director David P. Wehner said. "Cracking down on businesses that cheat the workers' compensation system is a major component of New York's anti-fraud program."

Investigators said Mr. Lupercio used the business name Fernando's Painting to purchase a workers' compensation policy from NYSIF for a small company. Mr. Lupercio then allegedly formed another, larger operation, doing business as Fernando's Painting, Inc., while failing to disclose the full extent of his business sales and payroll to NYSIF auditors. As a result, Mr. Lupercio allegedly defrauded NYSIF of approximately $50,000 in unpaid premium.

According to investigators, Mr. Lupercio allegedly used the original workers comp. policy as proof of coverage for the larger painting business, while being charged substantially less by NYSIF. He had no workers' comp. insurance for the larger business.

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

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