The owners, Musa Eljamal, 57, of Ardsley, N.Y., and his son, Sammy Eljamal, 28, of Purchase, N.Y., are accused of conspiring to defraud the New York State Insurance Fund of more than $400,000 by under-reporting the total payroll of the business, said Eliot Spitzer of the state Attorney General's office. They are also accused of not paying more than $700,000 in overtime wages to employees.

The two could face up to 15 years in prison and $1.2 million in civil damages.

In a sweep in Suffolk County, N.Y., county District Attorney Thomas Spota's office and the NYSIF announced the development of 17 cases amounting to $324,000 in fraud.

Among them Steven Perrotta, the owner of Island Lawn, a landscaping business, is alleged to have submitted false payroll documents to obtain a lower premium.

Mr. Perrotta is accused of stating on his application that he had no employees and no payroll. During an earlier workers' compensation hearing on an accident case of an employee, he allegedly testified that his company employed four people, an NYSIF spokesman said.

He faces a maximum of 5 years in prison, $5,000 in fines and $28,000 in restitution equal to the amount of premium not paid, according to the department spokesman.

In May, an East Amherst, N.Y., business owner pleaded guilty to defrauding the NYSIF of $175,000 over a three year period.

Michael Boubaris, 67, owner of Amherst Painting and Amherst Maintenance, plead guilty to misrepresenting his employees work classification, reducing his premium by 25 percent. He had a $3.6 million contract to paint bridges for the New York State Department of Transportation.

Mr. Boubaris, who is scheduled to be sentenced in August, faces a maximum of four years in prison and must pay up to $525,000 in restitution costs, said the spokesman.

In a statement, Kenneth Ross, NYSIF chief executive officer, said with the help of law enforcement officials, the department will continue to crack down on workers' comp fraud.