Michael Dibella, 42, of Commack, NY, pleaded guilty to attempted fraudulent practices, a misdemeanor, and was ordered to pay restitution on a policy canceled by NYSIF for non-payment in 2004.
Dibella was arrested by the Suffolk County District Attorney Thomas Spota’s Insurance Crime Bureau on Oct. 2, 2006 and charged with fraudulent practices, a felony, for participating with his wife in an alleged scheme to defraud NYSIF, the state’s largest workers’ comp insurance carrier.
After Dibella’s policy was canceled in 2004 for non-payment, a new workers’ comp policy was issued by NYSIF to Tina Muscarella, doing business as MDB Construction Corp.
Investigators said Ms. Muscarella was married to Dibella, and the application intentionally concealed the fact that Dibella was the real owner of MDB construction, or that he owed NYSIF money on the prior canceled policy.
The subsequent policy issued to Muscarella was canceled for non-payment in July 2006.