Two From Milford Charged With Defrauding Insurance Companies

Two Milford business owners have pleaded not guilty to allegations that they falsely reported their total payroll and workforce to avoid paying hundreds of thousands of dollars in insurance premiums

Segundo Nicolas Muyubisnay Cungachi, 31, and Maria Alegria Morocho Munoz were arranged in Worcester Superior Court last week according to the Worcester Telegram and Gazette.

Cungachi was charged five counts of with workers’ compensation fraud and two counts of larceny over $250. Munoz was charged with two counts of workers compensation fraud two counts of larceny over $250.

According to the Attorney General’s office, Cungachi and Morocho formed three Milford area roofing companies between 2008 and 2014: Byron Construction in 2008, Nationwide Construction Corporation in 2010, and First Nationwide Construction Corporation in 2012. Each company was allegedly insured for workers’ compensation and were each assigned premiums based on their reporting.

Authorities allege that based on their reporting, Cungachi and Morocho were granted lower premium rates on their company policies. As a result of this alleged scheme, Cungachi and Morocho put the insurance companies unknowingly at risk to cover any undisclosed employees for injuries that occurred or may have occurred during the policy periods and avoided paying more than $615,000 in insurance premiums.

The two were initially indicted in March.