Acting Attorney General Andrew J. Bruck and the Office of the Insurance Fraud Prosecutor announced that the owner of an Ocean County real estate improvement company has been charged in connection with an alleged scheme to provide false payroll information in order to obtain lower premiums on workers’ compensation coverage.
Zechariah Greenspan, 37, owner of Mulberry Management, L.L.C. (“Mulberry Management”) in Lakewood, was indicted July 7, 2021 on second-degree charges of insurance fraud, theft by deception and misconduct by a corporate official for allegedly providing false and misleading statements to New Jersey Manufacturers Insurance Group in order to obtain lower premiums on the workers’ compensation insurance he is legally obligated to provide employees.
According to the indictment, between July 2016, and March 2018, Greenspan committed five or more acts of insurance fraud by submitting false documents, making false or misleading statements, and omitting material facts that misrepresented the amount of wages that Mulberry Management paid to its individual uninsured subcontractors, and that Mulberry Management had paid an insured subcontractor – ZG Holdings, L.L.C. (“ZG Holdings”), which he also owns – for subcontractor work.
Greenspan committed theft by deception by obtaining workers compensation insurance at a lower premium by significantly underreporting his payroll to individual uninsured subcontractors, and by submitting false records indicating Mulberry Management had paid ZG Holdings for subcontractor work and that ZG Holdings had sufficient workers’ compensation coverage for said work, when in fact, he knew that Mulberry Management had not paid ZG Holdings for subcontractor work and/or that ZG Holdings lacked sufficient workers’ compensation insurance for said work, according to the indictment.
Greenspan is charged with misconduct by a corporate official for using Mulberry Management and/or ZG Holdings to commit the aforementioned crimes, according to the indictment.
Second-degree crimes carry a sentence of five to 10 years in state prison and a criminal fine of up to $150,000.
Deputy Attorney General Melvina D. Fennell presented the case to the State Grand Jury for the Office of the Insurance Fraud Prosecutor under the supervision of Private Insurance Bureau Chief Cheryl Maccaroni. Under the supervision of Lieutenant Anne Hayes, Investigator Thomas Andreopoulos coordinated the investigation with Analysts Terry Worthington and Jordan Thompson, along with Detective Matthew Armstrong.
Insurance Fraud Prosecutor Tracy Thompson noted that many cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution, and conviction for insurance fraud.
The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.