SCHENECTADY, NY – Earlier today, Inspector General Lucy Lang, formally presented the 2024 Annual Report of the New York State Workers’ Compensation Fraud Inspector General (WCFIG), to the Workers' Compensation Board during its April meeting in Schenectady, NY.  Alongside Bryan Richmond, Attorney-in-Charge for Workers’ Compensation Fraud, Lang also detailed for the Board the significant strides made by WCFIG over the past year uncovering fraud and bolstering the integrity of the state’s workers’ compensation system.

As detailed in the report, the 2024 work of WCFIG involved:

• Extensive public outreach through various television, print, radio/podcasts, online publications, task forces, and trainings, resulting in the receipt of 1,436 complaints alleging fraud by medical providers, employers, and claimants, via telephone, online form, email, mail, and social media platforms.
  
  
• The identification of $2.7 million in workers’ compensation fraud and 14 arrests for that conduct, a nearly 30% increase in both respects compared to 2023.

• Over $1.4 million in restitution and fines awarded to defrauded state agencies, insurers, and employers – also representing an increase in enforcement outcomes across the board compared to 2023.

• Recognition of the impact of WCFIG’s innovative “Triage Team” by the New York Anti-Car Theft and Fraud Association (NYACT) with the awarding of its John J. Kennedy Award.

Among the subjects of investigations highlighted in the report 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.

The report also reaffirms WCFIG’s ongoing oversight of fraud within the New York State Department of Corrections and Community Supervision (DOCCS) and builds on findings from a 2023 report revealing systemic abuse of workers’ compensation benefits by DOCCS staff, including:

• An investigation into a 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 to felony fraud and theft charges, and over $50,000 in restitution.

“The workers’ compensation system is a vital protection for workers who are legitimately injured on the job, and its exploitation adds insult to injury,” said New York State Inspector General Lucy Lang. “Thank you to the Board for their partnership in fighting fraud over the past year and going forward.”

“We are grateful to the Inspector General’s Office for their dedication to ensuring a fair workers’ compensation system in New York State," said New York State Workers' Compensation Board Chair Clarissa M. Rodriguez. "Their important work to uncover fraud and hold bad actors accountable protects workers and employers alike, and upholds the integrity of the system for all New Yorkers.”

The Inspector General thanked members of the WCFIG Triage Team for their work over the past year, including Attorney-In-Charge Bryan Richmond, Managing Investigator Jane Seely, investigators Jackie Desautels, Amy McMullen, Jim Pescetti, and Mario Rubino, Investigative Nurse Lisa Lingenfelter, and Senior Investigative Counsel & Director of Report Writing Jonathan Masters.

Read the full 2024 WCFIG Annual Report here.

The Offices of the New York State Inspector General:
Fostering confidence in New York State government by promoting integrity and transparency through oversight of covered agencies, their employees, and those doing business with the State.

To report wrongdoing, call 1-800-DO-RIGHT (367-4448) or visit ig.ny.gov.
Follow the office’s work on social media at @NewYorkStateIG.