New York Inspector Uncovered $2.7 Million in Workers’ Compensation Fraud in 2024
www.insurancejournal.com, April 17th, 2025
New York State’s Inspector General said her office identified $2.7 million in workers’ compensation fraud in 2024, a nearly 30% increase compared to 2023.
Inspector General Lucy Lang also reported there were 14 arrests for workers’ compensation fraud, also a nearly 30% increase compared to 2023.
More than $1.4 million in restitution and fines was awarded to defrauded state agencies, insurers, and employers last year, Lang told the Workers’ Compensation Board during its April meeting.
Among the subjects of investigations highlighted in Lang’s annual report were:
- A Brooklyn-based medical billing provider (Medlink) 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 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.