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Employer accused of workers’ comp fraud for failing to disclose income

A man running a siding contractor business in Suffolk, New York is facing workers’ compensation fraud charges for cheating the New York State Insurance Fund.  The man, Daniel Ulloa, 35, of East Patchogue, allegedly failed to disclose that he made about $240,000 on which insurance premiums were not paid.


The investigation of Cusay Siding was conducted by the New York York State Insurance Department Frauds Bureau, the Suffolk County District Attorney, and the NYSIF’s Division of Confidential Investigations.  They were working off of information gleaned during an audit of NYSIF premiums.


According to investigators Ulloa received about $240,000 in payments from two contractors which he failed to accurately report as income on his company’s payroll.  When employers underreport their income, they pay less in workers’ compensation insurance, which is a form of fraud.  The investigation led to Ulloa’s arrest on a felony charge.


Ulloa’s crime will earn him a felony charge of fraudulent practices because he violated Section 114 of the NY Workers’ Compensation Law.  Underreporting income on payroll documents is just one of many ways that employers commit workers’ compensation fraud in New York, which means hard working employees go without adequate benefits if they are hurt on the job.