Zechariah Greenspan, Charged With Insurance Fraud
LAKEWOOD – The owner of an Ocean County real estate improvement company has been charged for insurance fraud and more in connection to an alleged workers’ compensation insurance fraud scheme, officials said.
Zechariah Greenspan, 37, is the owner of Mulberry
Management, L.L.C. (“Mulberry Management”) in Lakewood.
Greenspan, who previously served on the Lakewood School
Board, was indicted on July 7 on second-degree charges of insurance fraud, theft
by deception and misconduct by a corporate official. These charges were made
due to Greenspan allegedly giving false and misleading statements to New Jersey
Manufacturers Insurance Group in order to get lower premiums on the workers’
compensation insurance he is legally obligated to provide employees.
The indictment states that between July 2016 and March 2018,
“Greenspan committed five or more acts of insurance fraud by submitting false
documents, making false or misleading statements, and omitting material facts
that misrepresented the amount of wages that Mulberry Management paid to its
individual uninsured subcontractors, and that Mulberry Management had paid an
insured subcontractor – ZG Holdings, L.L.C. (“ZG Holdings”), which he also owns
– for subcontractor work.”
Greenspan committed theft by deception by significantly
underreporting his payroll to individual uninsured subcontractors in order to
get a workers compensation insurance at a lower premium. He also submitted
false records indicating Mulberry Management had paid ZG Holdings for
subcontractor work and that ZG Holdings had sufficient workers’ compensation
coverage for said work, when in fact, he knew that Mulberry Management had not
paid ZG Holdings for subcontractor work and/or that ZG Holdings lacked
sufficient workers’ compensation insurance for said work, according to the
indictment.
Lastly, Greenspan is charged with misconduct by a corporate
official for using Mulberry Management and/or ZG Holdings to commit the
aforementioned crimes, according to the indictment.
Greenspan possibly faces five to 10 years in state prison
for these second-degree crimes, and a criminal fine of up to $150,000.
Comments
Post a Comment