N.Y. Auto Mechanic Parked for WC Fraud

A Buffalo area man who went back to work as an auto mechanic was hit with workers’ compensation fraud charges following his arrest by New York State Police for allegedly defrauding the New York State Insurance Fund.

James R. Delaney, 43, of, Tonawanda, N.Y., Erie County, faces felony charges including grand larceny, insurance fraud, perjury and violating the Workers’ Compensation Law.

Delaney was arrested Oct. 28, following a joint investigation by NYSIF’s Division of Confidential Investigations, the New York State Insurance Fund Frauds Bureau, the Workers’ Compensation Board Fraud Inspector General’s Office and the State Police Special Investigation Unit.

Investigators said Delaney was employed as an automotive mechanic for Davidson Automotive Inc., at 234 Woodward Ave, Tonawanda, in 1998 when he injured his lower back while lifting a transmission from the floor onto a transmission jack.

A recent investigation revealed that in August 2005 and again in January and February of 2006, Delaney allegedly worked beyond the limits of his disability as an auto mechanic for Bill’s Automotive, in Buffalo, NY, while collecting workers’ comp benefits from NYSIF.

During a Workers’ Compensation Board hearing, investigators said Delany allegedly lied under oath about not working since the time of his injury.

Investigators said Delany collected $3,900 in benefits he should not have received and, as a result of his arrest, estimated the potential future savings on his claim to be more than $49,900.