NEW CITY – A Spring Valley contractor and his company pled guilty to the felonies of insurance fraud and fraudulent practice for work he provided on a New York City luxury condominium project.
Kujtim “Tim” Kukaj, 45, and his company, RAR Renovations, Inc., engaged in scam where he deployed as many as 25 workers for an American Development Group project in New York between 2009 and 2013 without providing required workers’ compensation coverage for the employees.
Also on three separate occasions Kukaj provided false documentation to the company, purporting to certify he had the required coverage and he lied to the Workers’ Compensation Board about the number of employees he had on payroll.
The company was unaware of the lack of workers’ comp coverage. The state Workers’ Compensation Fraud Inspector General began an investigation after American Development Group received a premium assessment of $47,000 to allow for coverage of the employees, coverage, which should have been obtained by Kukaj and RAR Renovations.
As a result, two insurance companies, Travelers and The Hartford, experienced losses of $10,000 and $2,800 respectively.
Kukaj and his company will be sentenced in June.
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