Elmira bartender, auto mechanic arrested for workers’-comp fraud

ELMIRA, N.Y. — A bartender and self-employed auto mechanic in Elmira are facing charges in two separate cases that amount to a combined fraud on the state workers’-compensation system of more than $25,000.

Both James Hooks, Jr. and John VanRensselaer are facing charges following the investigation, the office of New York State Inspector General Catherine Leahy Scott said in a news release issued Monday.

Hooks, 56, of 112 Davis St. in Elmira, is facing charges of grand larceny in the third degree, insurance fraud in the third degree, falsifying business records in the first degree, and the workers’-compensation crime of fraudulent practices — all felonies.

Hooks is accused of collecting more than $24,000 in workers’-compensation payments for which he wasn’t eligible while also working as a weekend bartender at Ramsey’s Place in Elmira.

VanRensselaer, 53, of 203 Birch St., Elmira, is also charged with grand larceny in the fourth degree and two counts each of falsifying business records in the first degree and the workers’-compensation crime of fraudulent practices — all felonies.

VanRensselaer is accused of collecting more than $1,000 in workers’-compensation benefits for which he was not entitled while also working as a self-employed auto mechanic.

Elmira City Court Judge Ottavio Campanella arraigned Hooks and VanRensselaer on the charges. Both are due back in court Feb. 19, 2016, Leahy Scott’s office said.

“Workers’-compensation coverage is meant to protect employees, but these two individuals allegedly used it to fraudulently enrich themselves,” Leahy Scott said in the news release. “I will continue to use the resources of my office to pursue those who abuse the workers’-compensation system at the expense of hard-working New Yorkers.”

State law requires employers to maintain workers’-compensation insurance coverage for their employees. At the same time, New York expects employees to provide truthful information regarding their work activity to insurance carriers and the workers’-compensation board during the time they are receiving benefits, the office of Leahy Scott said.

Workers’-compensation fraud can lead to higher insurance premiums, increased workloads for co-workers, and an overall reduction in workforce productivity, the office added.

The investigation

Leahy Scott’s investigation found that Hooks, who sustained injuries while working at a grocery store in 1994, “repeatedly” told his insurance-benefits company that he was not employed in any capacity.

However, the probe uncovered that he had been working as a bartender at Ramsey’s Place on East Fifth Street in Elmira since at least 2013.

In a separate investigation, Leahy Scott also found that VanRensselaer falsely represented that he shut down his auto-mechanic garage and had been unemployed since 2009 when he had been working as a self-employed mechanic through at least early 2014.

He allegedly received more than $1,000 in benefits for which he was not entitled between September 2013 and February 2014.

VanRensselaer had been receiving workers’-compensation benefits based on a work-related injury sustained in 1983, according to Leahy Scott’s office.

Contact Reinhardt at ereinhardt@cnybj.com