A New York construction company and its owner pleaded guilty June 1 to workers’ compensation insurance fraud resulting in a loss of almost $300,000 in premiums to two insurance providers.
DME Construction Associates entered a guilty plea to felony grand larceny and insurance fraud charges, while its owner, Peter Chardon, pleaded guilty to misdemeanor charges of petit larceny and insurance fraud.
Chardon and DME have agreed to pay back $231,576 to State Farm Fire and Casualty Company and $65,875 to the New York State Insurance Fund representing the amount of funds stolen from each.
Roofers classified as painters, decorators
Investigators with the New York State Workers’ Compensation Fraud Inspector General and the Suffolk County District Attorney’s Office found Chardon and his company had classified its roofing workers as painters and decorators to get less expensive insurance premiums.
Chardon and DME underreported payroll in this manner from Feb. 20, 2017 through May 27, 2021.
Investigators found that DME’s contracts at a Long Island shopping mall and at a cancer center were for roofing work, not for painting and decorating, as the company told the insurance providers.