The owner of a Hauppauge, N.Y., contracting company was arrested for allegedly defrauding the state’s insurance fund out of $104,000 in premiums.

John Rusnak, 48, of Syosset, N.Y., is accused of lying about the number of people who worked for his company in order to lower the cost of his company’s workers’ compensation insurance, according to the New York State Insurance Department.

Rusnak owns Colt Contracting Corp. and investigators found that he concealed the payroll of eight of his employees to commit the fraud.

If convicted, he faces up to four years in prison.

The investigation was conducted by the insurance department’s frauds bureau, the New York Insurance Fund and the office of the Inspector General of the Workers’ Compensation Board.