Wednesday
March 25, 2009

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Nevele charged with failure to secure workers’ comp coverage for employees

KINGSTON - The Nevele Hotel LLC has been charged with failing to secure workers compensation coverage for its workers, a crime that carries fines of up to $50,000, Ulster County District Attorney Holley Carnright said Tuesday.

The corporation appeared in court through its attorney Mainetti, Mainetti and O’Connor.

The hotel was sentenced by Judge Bruhn to pay restitution, costs, penalties and charges in the amount of $35,277 to the Workman’s Compensation Board and to pay an additional fine of $5,000.  An additional condition of the plea is that if the hotel violates this law again, they could be resentenced, in which case the fine could be up to $100,000.

The New York State Worker’s Compensation Board had already sanctioned the Nevele Hotel three times before for not having workman’s compensation coverage.  The most recent violation, the subject of this indictment, involved an employee who was injured at work while the company did not have workman’s compensation coverage. 

The case was investigated by the New York State Worker’s Compensation Board Office of the Fraud Inspector General and Compliance Unit, the New York State Insurance Department’s Fraud Bureau, and the New York State Insurance Fund. 

The case was prosecuted through the joint efforts of the Ulster County District Attorney’s Office and the New York State Insurance Department’s Fraud Bureau via the insurance department’s fraud prosecution program. 

“It is important that employees in Ulster County be protected and that businesses here comply with this law,” said Carnright. “The businesses and taxpayers of Ulster County should not have to pick up the hotel’s cost for its injured workers.”

 


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