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One of the top executives of a temporary employment agency has been accused of scamming the New York State insurance Fund out of $25 million in workers’ compensation insurance premiums.
On Monday, Eric Goldstein pleaded not guilty to charges which included insurance fraud.
Prosecutors in Manhattan say Goldstein’s company, GT Systems, ran fifty temporary employment agencies. They also said that Goldstein had skipped out on the insurance premiums due to the state fund for years, while having employees make fake insurance certificates.
Goldstein, age 61, is also accused of under-reporting his payroll and mis-classifying his employees’ occupations, in order to reduce the workers’ compensation insurance rates he was charged.
Gerald Shargel, attorney for the defense, says that his client plans to fight the charges.
When representatives of the press attempted to contact GT Systems or its successor companies, calls were not returned.