New York Painter Cited for Work Comp Fraud

A Suffolk County, New York man used what he portrayed to be a small painting business as a facade to allegedly cover up a larger painting operation that cheated the New York State Insurance Fund out of thousands of dollars in workers’ compensation premium.

Detective from the Suffolk County District Attorney’s Office arrested Jorge Fernando Lupercio, 39, of E. Hampton, N.Y., charging him with violating the Workers’ Comp. Law as a felony.

Investigators said Lupercio used the business name Fernando’s Painting to purchase a workers’ comp policy from NYSIF for a small company. Lupercio then allegedly formed another, larger operation, doing business as Fernando’s Painting Inc., while failing to disclose the full extent of his business sales and payroll to NYSIF auditors. As a result, Lupercio allegedly defrauded NYSIF of approximately $50,000 in unpaid premium.

According to investigators, Lupercio allegedly used the original workers comp policy as proof of coverage for the larger painting business, while being charged substantially less by NYSIF. He had no workers’ comp insurance for the larger business.