Bergen Accountant Defrauds Insurance Fund Of $7M In Workers' Comp: DA

BERGEN COUNTY, NJ — A Bergen County accountant stands accused of defrauding a public insurance carrier of more than $7 million in workers' compensation premiums by filing doctored payroll records that greatly reduced the size of a client's workforce, authorities said.

Steven Lyon, an Edgewater accountant, was hired by New York specialty contractor Oneteam to prepare and file its quarterly payroll reports with the state Department of Labor, and its yearly state and federal tax returns. Lyon also acted as Oneteam's representative during annual audits conducted by the New York State Insurance Fund, Manhattan District Attorney Alvin Bragg, Jr., said.

As alleged, from Jan. 1, 2019, to May 15, 2021, Lyon used separate email accounts to file payroll-related documents with the labor department and insurance fund, Bragg said.

While filings submitted to the labor department were accurate, those submitted to the insurance fund were doctored to "drastically reduce" the size of Oneteam's workforce, the district attorney said.

The state insurance fund relied on these documents to calculate Oneteam's workers' comp insurance costs, and "grossly undercharged" the mason contractor as a result, the district attorney said. Over the course of the alleged scheme, Oneteam underreported payroll by more than $16 million, and underpaid the insurance carrier by more than $7 million.

“By intentionally underreporting payrolls, scammers save millions in premiums at the expense of hardworking New Yorkers," the district attorney said.

Lyon, along with Oneteam and its owner Mario Rojas, Jr., were each charged in a New York Supreme Court indictment with three counts of felony insurance fraud, and three counts of felony falsifying business records, the district attorney said.