Hauppauge Contractor Accused of Workers' Comp Fraud

NEW YORK, NY (09/03/2009)(readMedia)-- The owner of a Hauppauge contracting company was arrested Aug. 27 for lying about the number of people who worked for him so he could lower the cost of his company's workers' compensation insurance, the New York State Insurance Department reported.

The office of Suffolk County District Attorney Thomas J. Spota arrested John Rusnak, 48, of Syosset for workers' compensation fraud. Rusnak is the owner of Colt Contracting Corp.

Francis T. Hunt, an investigator with the Insurance Department's Frauds Bureau, said Rusnak is accused of defrauding the state Insurance Fund of $104,000 in lost workers' compensation premiums by concealing the payroll of eight workers.

Rusnak could be sentenced to up to four years in prison if he is convicted. A hearing will be held in Suffolk County Court.

In addition to the Insurance Department's Frauds Bureau, the Insurance Fund and the office of the Inspector General of the Workers' Compensation Board participated in the investigation.

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