Woman Arrested for Workers' Comp Fraud in N.Y. State

A Schenevus, N.Y. woman has been for defrauding the New York Workers' Compensation system out of more than $23,000.

It is alleged that Marie Banks, 41, wrongfully collected benefits while she worked as a home health aide, even though she claimed to be physically unable to work.

Banks began collecting benefits after suffering injuries to her left arm and neck in May 1994 while working as a residential counselor at the Upstate Home for Children. She claimed that she was physically unable to work.

However, an investigation revealed that, beginning in December 2002, Banks worked at the Resource Center for Independent Living in Utica. She continued to receive $10,338 in benefits, and an additional $13,050 in physical rehabilitation reimbursements. The investigation found that she did not incur these rehabilitation costs.

lllBanks surrendered herself today and was arraigned in the town of Maryland before Town Justice Joseph L. Staruck. She was released on her own recognizance and ordered to reappear in court on June 8. Banks is charged with Insurance Fraud in the third degree, grand larceny in the third degree, and workers' compensation fraud. She faces up to 7 years in prison.

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