For Immediate Release June 10, 2009                              
Contact: Corey Welford/Jessica Venezia (781) 897-8325 

City Of Lowell Contractor Pleads Guilty To Workers Compensation Fraud

WOBURN – A Hudson, NH resident has pleaded guilty to insurance fraud charges, Middlesex District Attorney Gerry Leone informed the public today

Michael Kazanjian, 54, pleaded guilty in Middlesex Superior Court on charges of providing a false statement to agencies and public instrumentalities departments, attempted larceny by false pretenses, and failure to maintain workers’ compensation insurance.  Middlesex Superior Court Judge Thomas Billings ordered Kazanjian to pay a $11,250 fine and court costs of $250.00.

“This defendant showed a disregard for the safeguards put in place by the City of Lowell and, as a result, put the City in financial risk,” District Attorney Leone said. “I would like to thank the Insurance Fraud Bureau for their cooperative investigation in this case.”

Based on an investigation by the State Insurance Fraud Bureau and the Middlesex District Attorney’s PACT Unit, in December 2005 Kazanjian intentionally altered his certificate of insurance to include a workers’ compensation plan that he did not have because it was a requirement to contract work with the City of Lowell.

Upon further investigation, it was determined that during the prior 2004-2005 season, Kazanjian obtained a snow plowing contract with the City of Lowell and was paid over $100,000 for it.  Kazanjian attempted to renew this contact for the 2005-2006 season, even though the City of Lowell requires its contractors to obtain workers’ compensation insurance, which Kazanjian did not have at the time.  The investigation ultimately revealed that Kazanjian knowingly altered a certificate to include proof of workers’ compensation and sent it to the City of Lowell.  In addition, it was found that Kazanjian had worked for several months of the 2004/2005 season without active workers’ compensation insurance.

Prior to awarding the contract, the City of Lowell learned that Kazanjian altered the certificate of insurance and terminated their relationship with him.

The case is being prosecuted by Assistant District Attorney Elisha Willis, assigned to the PACT Unit.  The Insurance Fraud Bureau Agent is Jeffrey Abrose.

The Middlesex District Attorney’s PACT Unit, established when District Attorney Leone took office, is dedicated to the investigation and prosecution of cases of public protection (including narcotics and organized crime), anti-terrorism, corruption, and technology. 

                                                                                                                ###