Restaurant Owner Accused of Wrongfully Receiving Over $69K in Disability Payments

The owner of a Far Rockaway restaurant was arrested on Thursday for wrongfully receiving over $69,000 in disability and workers' compensation by lying about her injuries and employment status, according to the Nassau County DA's office.

In 2006, Michelle Buggs, 45, of Inwood, who worked as a baker/cake decorator for Waldbaum's in Glen Head, injured her wrist and finger while helping a customer up from the floor and onto her walker, the DA said.

After that, she was granted disability payments by the Workers' Compensation Board.

In 2012, Buggs then filed incorporation papers with the state for a restaurant “It’z All 4U.”

Two years later, she had an independent medical examination where she signed paperwork that stated that she had not worked since the date of the accident and that she was unable to work, the DA said.

In 2015, Buggs testified under oath at a Workers’ Compensation hearing that she did not start a company and did not own a business, according to the DA.

Surveillance conducted in February 2015 allegedly showed Buggs cooking, working the cash register and serving customers as well as carrying items with her right hand and making deliveries to customer locations, the DA said.

Buggs allegedly wrongfully received more than $69,000 in disability payments since August 29, 2012, the DA said.

She was charged with second and third degree grand larceny, second and third degree insurance fraud, first degree perjury, first degree offering a false instrument for filing and workers' compensation fraud fraudulent practices, the DA said.

She was released on her own recognizance and is due back in court on August 26. Buggs faces up to 15 years in prison if convicted on the top charge.

“Workers’ Compensation Insurance was designed to protect those vulnerable employees injured on the job,” DA Madeline Singas said. “However, when individuals decide to scam the system by filing fraudulent disability insurance claims, they are undermining that very system designed to help those in need."

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