A New York man was arrested for defrauding the workers’ compensation system by obtaining benefits he was not eligible to receive. He allegedly continued working at his family business despite claiming to be unemployed due to an injury.
Jeffrey Smalt, 54, was charged with third-degree insurance fraud, third-degree grand larceny and first-degree perjury. All of the charges are classified as felonies.
Smalt suffered a workplace injury in July 2017 during his employment at Bath Electric, Gas & Water. He stopped working at the utility company and has been receiving workers’ compensation benefits for the injury.
During subsequent months, Smalt advertised, sold and delivered products for his family farm. However, he failed to inform the Workers’ Compensation Board and his insurance company that he had resumed working. As a result, Smalt continued receiving workers’ compensation benefits totaling $15,842.50 from December 2017 to May 2018.
New York law states that employees must truthfully report all of their work activity to insurance companies and the Workers’ Compensation Board. Individuals charged with claiming workers’ compensation benefits they are not entitled to face serious penalties including fines and jail time. In addition, they are also required to pay the government back for all the fraudulently obtained money. If you have been accused of insurance fraud, contact the experienced criminal defense attorneys at Brill Legal Group.