Contractor accused of dodging workers' comp premiums

A Hampton Bays contractor has been arrested on charges that he skirted $70,000 in workers' compensation insurance premium payments by underreporting his income by hundreds of thousands of dollars.

Lloyd Nolan, 45, allegedly earned $660,000 between 2006 and 2008 but reported only $235,000, the New York State Insurance Fund announced Tuesday. Nolan, a plumbing and carpentry contractor, paid for mandatory workers' comp premiums based on the lower amount.

Companies in the state must carry workers' comp insurance, which pays benefits to workers injured on the job.

The Insurance Fund issues the premiums, whose costs vary based on a company's payroll, number of employees and industry risks.

Nolan, who does business as C. Lloyd Nolan, maintains he doesn't use helpers.

Attempts to reach Nolan were unsuccessful. He is free on $250 bail and is scheduled to be arraigned March 11 in First District Court in Central Islip on one count of fraudulent practices, which carries a sentence of up to four years in prison.

The agency said it uncovered the income discrepancy when it audited a general contractor that had subcontracted work to Nolan. A joint investigation by the agency, the state Insurance Department and the Suffolk County district attorney's office led to Nolan's arrest.