By TRACEY DRURY
tdrury@bizjournals.com | 716-541-1609

An Erie County man was included among 18 individuals arrested as part of a statewide crackdown on workers' compensation fraud.

The arrest are part of an effort by the State Department of Financial Services to save businesses money and keep down costs for workers' compensation.

John Czechowski of West Seneca was charged with third degree insurance fraud, grand larceny and offering a false instrument for filing and workers' compensation fraud. According to the DFS, Czechowski collected $12,000 from the New York State Insurance Fund after he was classified as totally disabled for a back injury suffered while he was working as a roofer. Investigators discovered he was working off the books for a contracting company while collecting benefits.

Workers' compensation insurance is designed to provide wage replacement and medical benefits to employees who suffer legitimate job-related injuries.

In a department news release, Superintendent Benjamin Lawsky said worker's comp fraud is far from a victimless crime. Insurers must make up for every dollar paid out because of insurance fraud with a commensurate increase in premiums, thereby increasing their cost of doing business in the state. It also discourages business growth and prosperity, he said.

"Workers' compensation fraud is a serious crime that victimizes honest businesses and taxpayers who are forced to shoulder the burden of higher premiums," Lawsky said.

The DFS uses audits of workers' compensation claims by insurers, as well as investigations by DFS and enforcement agencies to fight fraud. The arrests were a result of joint investigations by DFS, the Office of the Inspector General (OIG) of the New York State Workers' Compensation Board, the New York State Insurance Fund and other insurers.