Two Niagara Falls men are facing felony criminal charges after one of them allegedly collected $1,120 fraudulently in no-fault auto insurance lost-wage benefits, according to the state Insurance Department.

Jack Easterly, 49, of 194 61st St., and Kenneth Zortman, 48, of 4536 Liberty Drive, were arrested and charged with insurance fraud by Niagara Falls police Nov. 2 following a joint investigation by the department's frauds bureau, the Niagara Falls Police detective bureau and Progressive Insurance Co. Easterly is also charged with grand larceny.

The charges were filed after Easterly collected lost-wage benefits after claiming that he was unable to work following a March 2005 traffic accident. But investigators allege that Easterly was observed and videotaped working at various construction sites after the accident, including one site where he was seen working with Zortman.

Authorities claim that Zortman submitted a fraudulent wage-verification report to Progressive so that Easterly could receive benefits.

Easterly is set to appear in court on Dec. 7 and Zortman on Dec. 21. If convicted, each defendant could be sentenced to a maximum of up to four years in jail.

Niagara County Assistant District Attorney Charles Pitarresi is prosecuting the case. Ross McQuade investigated the case for the Insurance Department's frauds bureau.