N.Y. Contractor Charged in Comp Fraud Case

A Nassau County, New York contractor allegedly using a forged certificate of insurance for workers’ compensation was arrested in a case of workers’ comp fraud.

Costas Hatzikontos, 41, of Merrick, NY, was charged by Nassau County DA Kathleen Rice’s Office for a violation of Sec. 114 WCL, as a felony.

New York State Insurance Fund Executive Director David Wehner said that NYSIF’s Division of Confidential Investigations (DCI) found that in 2007 Hatzikontos was hired as a sub-contractor by a NYSIF insured contractor.

Allegedly, Hatzikontos gave the contractor a forged insurance document that falsely indicated Hatzikontos’ business, KDP Renovations Inc., had a valid workers’ comp. policy with NYSIF.

The case was referred to DA Rice in 2007. Authorities had been unable to locate Hatzikontos until joint surveillance by NYSIF DCI and the NYS Insurance Department Frauds Bureau led to his capture.

Investigators said the case began after a routine audit of the insured’s business when it was found that a workers’ comp. Acord certificate used by Hatzikontos was not valid.

Officials stated Hatzikontos has a prior workers’ comp. policy with NYSIF that was cancelled in 2006 for non payment. As a result of allegedly using a forged certificate, officials said Hatzikontos left NYSIF’s insured contractor liable for an additional $6,685 in billed premium.