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Rockland County resident Anthony Frascone, age 51, of Congers, and owner of Alpha-Omega, was indicted by a Rockland County grand jury on Friday, Jan. 14, for two counts of grand larceny and insurance fraud, said Rockland County District Attorney Thomas E. Walsh.
According to the DA's Office, Frascone was indicted following an investigation by the office's Special Investigation Unit, which found he provided false information to acquire legally required workers’ compensation insurance for his employees.
Walsh said the investigation found that from November 2016 through 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 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.
After a thorough investigation, it was uncovered the true number of employees and payroll records for the time period. It indicated the defendant employed over 90 individuals and had a workers' compensation payroll in excess of $8,000,000 for construction, not real estate work as stated on the policy, the DA's Office said.
Based upon the true and accurate rate for the worker's compensation policy, he should have paid $1,498,748 in insurance premiums, the office said.
In November 2017, Travelers Insurance Company declined to renew Frascone's worker's compensation policy and he then sought coverage from The Hartford Company where he pulled the same scam and again received a policy with a premium of only $328, the DA's Office said.
The Hartford canceled the policy after three months, Walsh said.
Based upon the investigation into the true number of employees and payroll records, the proper premiums that should have been paid for the three months were $233,463.
Frascone's bail was set at $10,000 cash/ $100,000 bond/ $100,000 partially secured bond at 5 percent.
He also was required to turn over his passport and receive permission before leaving the state.
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