Company Pleads Guilty to Grand Larceny

Modified: February 23, 2016 3:54pm

1/14/2016

Acting District Attorney Michael J. Flaherty, Jr. announces that Milherst Construction, Inc., of Clarence, New York pleaded guilty to Grand Larceny in the Second Degree this morning before State Supreme Court Justice Penny M. Wolfgang in connection with an unemployment insurance scam that defrauded the state of $79,616 between January, 2007 and April, 2015.  This was the highest charge the company could have been convicted of had the case gone to trial.

Milherst Construction, which specializes in large site development, encouraged employees to fraudulently claim and collect unemployment insurance during winter months while the employees were actively employed performing snow removal contracts for the company. 

In addition to making full restitution as a condition of the plea, the company paid an additional penalty of $12,461.65 to the New York State Department of Labor.

Acting Erie County District Attorney Michael J. Flaherty Jr. stated, “As Acting Erie County District Attorney I will aggressively prosecute anyone – whether an individual or corporation – who seeks to steal the taxpayer’s money.  Fraudulent schemes, no matter how large or how small, will not be tolerated.”

The case was investigated by the New York State Department of Labor, the New York State Police, and Confidential Criminal Investigators from the Erie County District Attorney’s Office.

Erie County Assistant District Attorneys Gary M. Ertel and Christopher P. Jurusik, of the Special Investigations and Prosecutions Bureau, successfully prosecuted the case.