Michael Cholowsky, the owner of Sky Materials Corporation, was indicted in early March for providing false information to his company’s insurer about the number of workers he employs.
Why does this matter? By underreporting, Cholowsky collected more than $1 million in premium reductions from the insurance provider for workers’ compensation.
While Sky Materials employs around 150 people, Cholowsky claimed fewer than 20. Investigators became suspicious of him while they were investigating an on-site fatality in April 2015. In that case, Cholowsky was charged with criminally negligent homicide and reckless endangerment.
Cholowsky obviously hurt himself and his company financially by their underreporting, but he also put the company and all of its employees in a vulnerable spot because underreporting leads to underinsuring. The dishonest practices shown by Cholowsky can have further risks by creating a work environment with a lax approach to following proper procedures.
Workers’ Comp is Our Specialty
We’re particularly steamed about this because, as experts in prosecuting cases involving workers’ compensation, we know that New York workers’ comp benefits are often thought of as life lines for those who have been injured on the job. Without workers’ comp, making ends meet while being on the hook for medical bills and other necessities can be next to impossible.
Here in New York, practically all employers must provide workers’ comp for all of their employees. Additionally, all employers must provide the Workers’ Compensation Board with full access to their records and payroll information, a requirement Cholowsky bucked by running his payroll through a check casher.
If you feel you’ve been cheated out of workers’ compensation benefits, contact the Fitzgerald Law Firm today to discuss your options. Our number is 800-323-9900.