New York State Inspector General Letizia Tagliafierro today announced the arraignments of two Capital Region construction contractors who put their employees at risk by failing to have required workers’ compensation insurance coverage.
“Workers’ compensation insurance provides critical protections to safeguard both the business and the worker,” said Inspector General Tagliafierro. “Companies that disregard this important legal requirement put their employees at severe financial risk – especially in the construction fields. I thank our law enforcement partners for their ongoing support to ensure that contractors put the necessary protections in place for their employees.”
Segundo Loja, of Albany, owner of NY Power Construction Corporation, was arraigned in City of Saratoga Springs Court on charges of Falsifying Business Records in the First Degree, Failure to Secure Compensation and Fraudulent Practices – all felonies. An investigation by the Inspector General determined that Loja submitted a certificate of insurance indicating that his company had both commercial general liability and workers’ compensation insurance coverage – as required for any entity with employees. The Inspector General confirmed with the carrier that NY Power did not carry workers’ compensation insurance as required by law. The investigation ultimately determined Loja had several workers on the job.
Robert A. Lutz, of Ballston Spa, owner of Robert’s Roofing & Remodeling, was arraigned in City of Saratoga Springs Court on Offering a False Instrument for Filing in the First Degree, Fraudulent Practices – both felonies – and Failure to Secure Compensation, a misdemeanor. The Inspector General’s investigation found that Robert’s Roofing claimed in July 2019 that he had no employees when submitting a building permit application to the Saratoga Springs Building Department for a residential roofing job within the city. However, multiple witnesses stated they observed three individuals on the job throughout the project – all who were working without the legally required workers’ compensation coverage.
Inspector General Tagliafierro thanked the Saratoga Springs Police Department for affecting the arrests and Saratoga County District Attorney Karen Heggen for aiding the investigations and for prosecuting these cases. The Inspector General also thanked the New York State Department of Labor for assisting in these cases.
The defendants are presumed innocent until and unless proven guilty in a court of law.