FOR IMMEDIATE RELEASE
February 9, 2009
The owner of a Yonkers bus service was arrested Jan. 30 on a felony charge for failing to provide workers' compensation insurance coverage for 25 employees over a two-year period, the New York State Insurance Department and New York State Workers' Compensation Board reported.
Salvatore DiPaolo, 59, the owner of Service Transit Lines, Inc., was arrested by state police at Hawthorne and charged with violating the state workers' compensation law. He was arrested following an investigation by the Insurance Department's Frauds Bureau and the Workers' Compensation Board's Fraud Inspector General and Compliance Unit.
DiPaolo, of 1 Dogwood Dr., Scarsdale, also faces charges of harassment and obstructing governmental administration, both in the second degree, resulting from an altercation on June 10 when Workers' Compensation Board investigators issued him a stop work order for operating without insurance.
According to investigators, DiPaolo failed to provide workers' compensation insurance for the 25 employees of his school and charter bus service between 2006 and 2008, thereby avoiding payment of an estimated $130,000 in premiums. His clients included the Harrison School District, the Town of Mamaroneck and various casinos.
If he is convicted, DiPaolo could be sentenced to up to four years in prison on the felony charge. He was released pending a hearing to be scheduled in Westchester County Court. The case is being prosecuted by the office of District Attorney Janet DiFiore.