New York man arrested on same fraud charge as seven years ago

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A Morrisonville, N.Y., man is again in trouble with insurance fraud investigators after falsifying a medical examination to access workers’ compensation benefits, his second such insurance fraud charge in the last seven years.

James R. Lacey, 54, was recently arrested for collecting $6,600 in benefits he was not entitled to receive, according to the New York State Insurance Department.

Lacey started collecting the benefits after suffering a back injury in a 2007 traffic accident, according to the department. The incident occurred while he was working as a trash collector for a private company.

The NYID’s frauds bureau said it does not dispute the injury, but that Lacey failed to disclose a similar reported injury that occurred earlier and led to his arrest in 2003. Had he disclosed the earlier injury, investigators say, Lacey would not have received full wage replacement benefits.

Lacey pleaded guilty in Albany County in 2003 to charges of insurance fraud and workers’ compensation fraud for exaggerating the extent of a disability caused from an earlier work-related injury. He was sentenced to pay $8,400 in restitution, serve 60 days in jail and placed on five years of probation.

Lacey’s new charges are third-degree insurance fraud, third-degree grand larceny and committing a fraudulent practice, the NYID said.

His arrest was the result of an investigation that began when a workers’ compensation claims examiner for the New York Insurance Fund recognized Lacey’s name from an earlier case.

Lacey is scheduled to appear at a Feb. 4 hearing in Plattsburgh City Court.

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