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James J. Wrynn    Acting Superintendent of Insurance    25 Beaver Street  New York, N.Y. 10004

ISSUED 09/03/2009 FOR IMMEDIATE RELEASE

CONTRACTOR ARRESTED FOR FRAUD IN SUFFOLK COUNTY

The office of Suffolk County District Attorney Thomas J. Spota arrested a New Jersey contractor Aug. 27 after an investigation by the New York State Insurance Department revealed that he defrauded the state Insurance Fund of $656,000 in lost premiums by falsifying the nature of his business.

George Capaccio, an investigator with the Insurance Department’s Frauds Bureau, said John Barone, 67, of Morganville, NJ, provided information to the Insurance Fund indicating he was operating a consulting business. In fact, Barone’s business was engaged in dry wall installation and carpentry.

Capaccio said Barone falsified his business’s activities for nine years so he could lower the cost of the workers’ compensation premiums. Barone is the president of Byram Associates Inc.

Barone was charged with fraud under the Workers’ Compensation Law and could be sentenced to up to seven years in prison if he is convicted. A hearing will be held in Suffolk County Court.

In addition to the Insurance Department’s Frauds Bureau, the Insurance Fund and the office of the Inspector General of the Workers’ Compensation Board participated in the investigation.

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