Pearl River Contractors Accused Of Skipping Insurance For Workers

PEARL RIVER, NY — The owners of a Pearl River family contracting firm are accused of failing to obtain workers compensation insurance despite having several employees working on construction jobs.

One of the employees was injured on the job, New York State Inspector General Letizia Tagliafierro said last week.

Peter and Kathryn McCann, who own and operate PMC Construction on Railroad Avenue in Pearl River, were arraigned before Judge Richard C. Finning in Orangetown Justice Court on charges of Failure to Secure Compensation and two counts of Fraudulent Practices (E felonies).

The state Inspector General's office alleged that the McCanns repeatedly filed for home improvement licenses/renewals with the Rockland County Office of Consumer Protection. In their applications, they claimed PMC had no employees and therefore did not meet the requirement for workers’ compensation insurance.

New York State Workers’ Compensation Law requires all contractors to carry workers compensation insurance for their employees. Failing to carry insurance for more than five employees is a felony.

In January 2016, a man working as a painter on a PMC project in Blauvelt fell off a ladder and fractured his foot, according to the IG's office. He filed a claim with the Workers’ Compensation Board saying that the accident occurred while he was employed by PMC.

The Inspector General's investigators reviewed bills submitted by PMC to the client on the project that detailed the work performed by PMC from November 2015 to September 2016. The invoices listed more than five employees on the job, including the man who was injured.

The employee worked for PMC sporadically since 2014. The IG's office said Peter McCann admitted to the Workers’ Compensation Board that he did not have workers’ compensation insurance, which would have covered the employee’s injury. The Board found PMC liable for the employee’s claim, which is being paid by the Uninsured Employers Fund.

“Workers’ Compensation insurance protects employees and employers,” said Tagliafierro. “When business owners attempt to skirt rules to ensure coverage for their workers who are engaged in dangerous occupations, they show a disregard for their safety.”

Tagliafierro thanked the Rockland County District Attorney’s Office Special Investigation Unit for prosecuting the case and conducting the arrest.

Rockland County District Attorney Tom Walsh said “My office worked with investigators from the New York State Inspector General’s Office to ensure the prosecution of these defendants. Here is a perfect example of state and local agencies working jointly to ensure justice was served."