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Local man sentenced to 3 years

Staff Reports

ALBANY — A man convicted of defrauding insurance companies by creating and then dissolving dummy companies to obtain worker's compensation coverage for claims, was sentenced to serve three years and pay back more than $1 million in restitution in federal court, officials said.

According to the U.S. Attorney's Office, Kerry Clabaugh, entered a guilty lea to charges of conspiracy to commit wire fraud in violation of U.S. law.

According to spokesperson Sue McKinney, Clabaugh admitted to owning "On Demand Temporaries," a temporary employment agency in Albany. Over the period of several months, Clabaugh was accused of repeatedly changing the name of the business to avoid paying insurance premiums and to secure new lines of coverage, McKinney said.

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