A Rockland County contractor has been accused of providing false information to obtain legally required workers compensation insurance.
The contractor, Anthony P. Frascone, 51, of Congers, was indicted by a Rockland County grand jury on charges of first- and second-degree grand larceny and first-degree insurance fraud, all felonies.
Rockland County District Attorney Thomas Walsh said Frascone, the owner and principal of the Alpha-Omega construction company, was arraigned on the charges on Jan. 13. Rockland County Court Judge Larry J. Schwartz set bail at $10,000 cash or $100,000 bond or partially secured bond, which Frascone posted.
As an additional bail condition, Frascone was required to surrender his passport and requires the court's permission to leave the state. He is due back in court on Feb. 1.
According to Walsh, Frascone performed general contracting and multi-level building construction projects in the New York area. He sought workers compensation insurance, which is required to be considered for any construction contract in New York.
For the year from November 2016 to November 2017, Frascone applied for and received binding coverage from Travelers Insurance Company based upon information he supplied that he was operating a real estate company with a single employee, and had only $40,000 in workers compensation payroll. He was given an active workers compensation policy with a premium of $403.
Walsh said an investigation by his office found Frascone actually employed more than 90 people, with a workers compensation payroll in excess of $8 million for construction, not real estate as stated on the policy. Walsh said Frascone actually should have paid more than $1.49 million in insurance premiums to Travelers to properly cover all his workers during that period.
Walsh said Travelers declined to renew Frascone's workers compensation policy in November 2017. So Frascone sought the same coverage from the Hartford insurance company. He applied to Hartford for coverage for one clerical employee and a workers compensation payroll of $45,000 for the period of November 2017 to November 2018.
He received binding coverage with a premium of $328, but Hartford canceled the policy after three months.
Walsh said based on the actual number of employees, Frascone should have paid a premium of $233,463 for those three months, or over $1 million for a full year.
In a statement released by his office, Walsh said the arraignment of Frascone was an example of his office working "to ensure that all workers receive the rights they are entitled to under the law."
But Lawrence Garvey, Frascone's attorney, said this is a "highly technical case" involving a lot of financial information.
"Mr. Frascone does not believe there was any criminal intent," Garvey said. "He denies all the charges, and he looks forward to sharing his side of the story at the appropriate time."
This article originally appeared on Rockland/Westchester Journal News: Rockland contractor charged with grand larceny, insurance fraud