The New York state inspector general’s office identified $2.7 million in workers’ compensation fraud during 2024, resulting in 14 arrests, a 30% increase from the year prior, according to its annual report released Tuesday.
Inspector General Lucy Lang in the report noted that more than $1.4 million in restitution and fines were awarded to defrauded state agencies, insurers, and employers – also representing an increase in enforcement outcomes across the board compared to 2023.
Among those investigated were:
- A Brooklyn-based medical billing provider that diverted over $1.9 million from 13 insurers, including more than $1.3 million from the New York State Insurance Fund alone, intended as payments to surgeons caring for workers’ compensation claimants.
- A Saratoga-based paving company owner operating a business with multiple employees without obtaining workers’ compensation coverage whose conduct came to light following the sustaining of an on-the-job injury by one of his employees.
- A United Parcel Service (UPS) employee working as a high school soccer coach while out of work collecting wage indemnity benefits from an alleged back injury.
In addition, the office investigated a state correction officer found to be working as a bus driver while collecting lost wage benefits stemming from an alleged work injury, which resulted in a guilty plea and more than $50,000 in restitution…