Patchogue contractor allegedly downplayed asbestos hazard for lower insurance, Tierney says

A Patchogue asbestos removal contractor allegedly undercounted his employees and misrepresented the hazardous nature of his work to underpay insurance premiums by more than $160,000, Suffolk officials said.

Joseph Arthurs, 56, did not retain adequate insurance coverage for his VGN Enterprise Corporation, Suffolk County District Attorney Ray Tierney said in a news release.

When applying for coverage through Wesco Insurance Company in March 2023, Arthurs allegedly listed a single full-time contractor as his sole employee and reported an annual payroll of $50,000, according to Tierney’s office. A September 2024 investigation by the Offices of the New York State Inspector General revealed Arthurs had multiple employees and his annual payroll totaled $354,112.

The investigation also revealed that Arthurs received New York State certification to handle asbestos and filed multiple "Asbestos Project Notifications" with the state labor department, but he concealed the "safety risks" associated with his work from the insurance company, the district attorney said. The asbestos notifications permit contractors to handle "large projects" involving the material, according to the department’s website. By filing them, Arthurs "confirmed that the company was engaged in a more hazardous level of asbestos abatement and therefore required workers’ compensation coverage classified for that type of work," according to Tierney's office.

Based on the information Arthurs provided, Wesco had "a workers’ compensation policy for VGN with an annual premium of $4,203," Tierney’s office said. The company "significantly underpaid a total of $163,561.00 in insurance premiums," the release said.

Arthurs was arrested and issued a desk appearance ticket on Aug. 25, the release said. He pleaded not guilty on Wednesday before Suffolk County District Judge Alonzo Jacobs to charges of fraudulent practices and failure to secure compensation, according to court records. He is scheduled to return to court on Sept. 21.

His defense attorney, James Hagney, could not be immediately reached for comment late Thursday.