LAKEWOOD – The owner of an Ocean County real estate improvement company has been charged for insurance fraud and more in connection to an alleged workers’ compensation insurance fraud scheme, officials said.
Zechariah Greenspan, 37, is the owner of Mulberry Management, L.L.C. (“Mulberry Management”) in Lakewood.
Greenspan, who previously served on the Lakewood School Board, was indicted on July 7 on second-degree charges of insurance fraud, theft by deception and misconduct by a corporate official. These charges were made due to Greenspan allegedly giving false and misleading statements to New Jersey Manufacturers Insurance Group in order to get lower premiums on the workers’ compensation insurance he is legally obligated to provide employees.
The indictment states that between July 2016 and March 2018, “Greenspan committed five or more acts of insurance fraud by submitting false documents, making false or misleading statements, and omitting material facts that misrepresented the amount of wages that Mulberry Management paid to its individual uninsured subcontractors, and that Mulberry Management had paid an insured subcontractor – ZG Holdings, L.L.C. (“ZG Holdings”), which he also owns – for subcontractor work.”
Greenspan committed theft by deception by significantly underreporting his payroll to individual uninsured subcontractors in order to get a workers compensation insurance at a lower premium. He also submitted false records indicating Mulberry Management had paid ZG Holdings for subcontractor work and that ZG Holdings had sufficient workers’ compensation coverage for said work, when in fact, he knew that Mulberry Management had not paid ZG Holdings for subcontractor work and/or that ZG Holdings lacked sufficient workers’ compensation insurance for said work, according to the indictment.
Lastly, Greenspan is charged with misconduct by a corporate official for using Mulberry Management and/or ZG Holdings to commit the aforementioned crimes, according to the indictment.
Greenspan possibly faces five to 10 years in state prison for these second-degree crimes, and a criminal fine of up to $150,000.
Insurance Fraud Prosecutor Tracy Thompson states that many cases have started with anonymous tips. Anyone who is concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visit NJInsurancefraud.org.
The indictment is merely an accusation and the defendant is presumed innocent until proven guilty.
