Congers Contractor Accused Of Fraud To Avoid Worker Comp Premiums

ROCKLAND COUNTY, NY — A Congers construction company owner accused of workers comp insurance fraud was arraigned Thursday, Rockland County District Attorney Thomas E. Walsh II announced.

Anthony Frascone, owner of Alpha-Omega, was indicted by a Rockland County Grand Jury on charges of first- and second-degree grand larceny and first-degree insurance fraud following an investigation by the Rockland County District Attorney’s Office Special Investigations Unit with assistance from the New York State Inspector General’s Office.

The 51-year-old, as owner and principal of Alpha-Omega, performed general contracting and multi-level building construction projects in the region, the DA's office said. All contractors must carry worker compensation insurance.

Prosecutors said Frascone applied for and received coverage saying he was operating a real estate business with a single employee and only $40,000 in Workers' Compensation payroll and was given an active workers' compensation policy with a premium of $403 for November 2016-17.

In fact, prosecutors allege, he employed more than 90 people and had a workers' compensation payroll in excess of $8 million for construction, not real estate work as stated on the policy.

Based on the accurate rate for the policy, Alpha-Omega should have properly paid $1,498,748 in insurance premiums to Travelers Insurance Company during that period, prosecutors said.

In November 2017, Travelers Insurance Company declined to renew the policy and Frascone then sought coverage with The Hartford company, prosecutors said. He told them he had one clerical employee and needed $45,000 in workers’ compensation payroll for coverage from November 2017-18.

He received coverage with a premium of $328 though The Hartford canceled the policy after three months.

Based upon the investigation into the true number of employees and payroll records, the proper premium that should have been paid for the three months was $233,463, prosecutors said.

“Workers’ Compensation insurance provides a critical safety net both for New York State’s workers, and the businesses that employ them,” said New York State Inspector General Lucy Lang. “Anyone who seeks to undermine those protections for their own benefit puts themselves, their employees, and the integrity of the state’s economy at risk."

Frascone was arraigned in Rockland County Court on Thursday by the Honorable Judge Larry J. Schwartz, and bail was set at $10,000 cash/ $100,000 bond/ $100,000 partially secured bond at 5 percent. Under further bail conditions, he was required to surrender his passport and will require the court's permission to leave New York state. He is scheduled to return to court Feb. 1.

The case is being prosecuted by Senior Assistant District Attorney George Del Fierro.

“Today’s arraignment is another example of my office working with a state agency to ensure that all workers receive the rights they are entitled to under the law," Walsh said in the announcement."I would like to commend the investigators of the Rockland County District Attorney’s Office Special Investigations Unit and our partners at the New York State Inspector General’s Office for working closely with my office on this case."