Temp-Worker Exec Charged with Insurance Fraud in New York

May 19, 2010

A temporary-worker magnate has been charged with scamming the New York State Insurance Fund out of $25 million in payments he owed for workers’ compensation insurance.

Eric Goldstein pleaded not guilty Monday to charges including insurance fraud.

Manhattan prosecutors say his company, GT Systems, ran 50 temp agencies. Prosecutors say he avoided paying premiums to the state fund for years while having employees make fake insurance certificates.

The 61-year-old Goldstein is also accused of underreporting his payroll and misclassifying workers’ occupations to get lower workers’ compensation insurance rates.

Defense lawyer Gerald Shargel says Goldstein plans to fight the complex charges.

Messages left at possible telephone numbers for GT Systems or successor companies weren’t immediately returned.

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