December 15, 2017

NY Man Pleads Guilty to Nearly $10,000 in Workers’ Comp Fraud

Buffalo, NY – New York State Inspector General Catherine Leahy Scott recently announced the arrest and guilty plea of a City of Buffalo man on charges he defrauded the Workers’ Compensation system of nearly $10,000 in benefits to which he was not entitled because he had returned to work but continued collecting benefits as if he was not employed.

Arnold Fassbinder, 55, of Royal Avenue, Buffalo, was today charged with and pleaded guilty in Erie County Court to one count of Grand Larceny in the 4th Degree, a felony.

An investigation by Inspector General Leahy Scott found that Fassbinder began receiving Workers’ Compensation benefits in July 2015 when he suffered multiple injuries after falling off a ladder while attempting to repair a roof.

By November, 2015, Fassbinder represented that he was medically cleared to resume work and he returned to his employment doing home improvements for Walden Holding Inc. in Cheektowaga, New York. After returning to his job, however, he repeatedly submitted paperwork to the New York State Insurance Fund asserting he was not working in any capacity. These falsifications enabled him to continue to receive Workers’ Compensation benefits while simultaneously earning pay at his employment receiving a total of $9,436.24 in Workers’ Compensation benefits to which he was not entitled.

“This defendant repeatedly falsified and made false representations about his work status in order to receive benefit payments meant for those truly out of work because of an injury,” said Inspector General Leahy Scott. “I will continue dedicating the resources of my position and office to protect the benefits meant to assist honest, hard-working New Yorkers.”

Under State law, employers are required to maintain Workers’ Compensation coverage for their employees, and employees are expected to provide truthful information regarding their work activity to insurance carriers and the Workers’ Compensation Board during the time they are receiving benefits.

Fassbinder is scheduled to be sentenced on Feb. 13, 2018.

Inspector General Leahy Scott thanked the New York State Insurance Fund for their assistance with the investigation, and Erie County District Attorney John J. Flynn and his office for prosecuting this matter.

Source: NY Inspector General

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