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Suffolk Contractor Arrested for Workers' Comp Fraud

Posted on Feb 13, 2008

A Port Jefferson, New York, construction contractor who was previously convicted of tax evasion now faces two additional felonies after an arrest for workers' compensation fraud.

Gary Woltmann, president of Woltmann Associates, has allegedly used a payroll scheme to avoid paying over $150,000 in workers' compensation premiums to his insurer. He also defrauded New York out of more than $36,000 in payroll taxes.

The workers' compensation charge is the more egregious one, because Woltmann was not only breaking the law, but putting his employees at risk. "Protecting employees with workers' compensation insurance is not optional in New York," says Chair Zacharay Weiss, "when employers avoid that insurance, they're jeopardizing their workers, and counting on honest businesspeoplee to bail them out."