This is a strange case of fraud that falls into both the contractor fraud and the workers compensation fraud categories. A husband and wife duo owned a New York construction company that made a bid on a construction project sponsored by the City of Amsterdam Industrial Development Agency (AIDA). The bid was on a project that involved rehabilitating mixed-use commercial and residential buildings. The bid the couple put down on the project was about one-third of the amount of the next highest bidder. The couple listed several subcontractors that they planned to use for the project.

Under state law an employer is required to provide workers compensation coverage for any employees, and companies that use subcontractors must affirm their workers compensation coverage for any project that they oversee. The couple allegedly forged documents to make it look like the company was exempt from having workers compensation coverage and filed those documents with the City of Amsterdam's Engineering Department and the AIDA.

By forging these documents, the construction company saved a significant amount of money and gained an unfair advantage over honest competitors. The couple effectively committed two types of fraud in this scheme by submitting forged documents to avoid paying for workers compensation coverage and then using the savings from the falsified exemption to undercut the competition on competitive construction project bids. The couple was arrested and arraigned on the charges and remain out of jail on bond.