Business Owner Nabbed in Fraud Scheme

A Connecticut business owner classified as totally disabled more than 20 years ago and receiving wage replacement benefits from the New York State Insurance Fund has been charged with workers’ compensation fraud.

Theresa Yazzo, 67, faces felony charges including insurance fraud, grand larceny and offering a false statement following her arrest by New York State Police in Loudonville, N.Y.

Investigators said Yazzo owned and operated the Gallery Grill in Clinton, CT, on Long Island Sound, yet allegedly signed and returned statements to NYSIF that she has not worked since a job-related accident in 1981.

At the time, Yazzo was a switchboard operator for the White Plains Executive Hotel Company. She claimed injuries to her arm, elbow, leg and back when a table holding a switchboard tilted, causing Yazzo to fall to the floor and a large Rolodex to fall on top of her. She was declared permanently totally disabled in 1986.

NYSIF estimated future savings on Yazzo’s claim to be $75,867 as a result of her arrest.

Investigators said Yazzo has operated the Gallery Grill since 2005.