Trucking Company Owner and DOT Inspector Admits $30K Workers’ Comp Fraud Scheme
Suffolk County, NY – A former New York State Department of Transportation (NYSDOT) motor carrier investigator has pleaded guilty for his role in defrauding the Workers’ Compensation system out of almost $30,000.
Niccolo Mormile, 39, pleaded guilty Thursday in Suffolk County District Court to Attempted False Filing of an Instrument, a misdemeanor.
According to court records, Mormile claimed to have sustained a work-related injury when he fell at work for his State job in July of 2016 and collected Workers’ Compensation wage replacement benefits until June of 2017.
While out of work during that period, Mormile attended two Independent Medical Exams (IME) and on both occasions, advised the physician that he was not actively working in any capacity.
However, during that time period Mormile owned and operated his own trucking company, CNC Trucking, from which he earned more than $125,000 while also collecting $28,580.29 in wage replacement benefits to which he was not entitled.
District Court Judge Richard Dunn ordered Mormile to pay full restitution of $28,580 and resign from state service.
Despite being a NYSDOT motor vehicle inspector, Mormile’s trucking company had an abysmal maintenance record.
According to data from the Federal Motor Carrier Safety Administration (FMCSA), CNC Trucking operates one truck and employs one driver.
However, in the last 24 months of reporting, CNC Trucking has a whopping 66.7% vehicle out of service rating.
The company failed four out of six inspections during that time.
Mormile is expected back in court in December.
An earlier version of this article reported that in December of 2018, Mormile was also charged with 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, and Official Misconduct, a misdemeanor.
Prosecutors alleged that while working for the New York State Department of Transportation as a motor vehicle investigator, Mormile accessed, without authorization, information from state and federal databases that he shared with his lover, now spouse, who serves as the CEO of a trucking consulting business.
Further, prosecutors asserted that Mormile engaged in these acts from July of 2016 to March of 2018.
However, a source close to the case tells Transportation Nation Network (TNN) these charges have since been dropped and litigation is being prepared to address the “false information.”
TNN will continue to follow this case.