April 17, 2025 | JacobiJournal.com – New York workers’ comp fraud surged in 2024, with Inspector General Lucy Lang reporting $2.7 million in fraudulent activity, marking a nearly 30% increase over 2023. Lang also confirmed 14 arrests, another sharp rise from the prior year. The Inspector General’s findings underscore how New York workers’ comp fraud continues to evolve, creating costly risks for insurers, employers, and state agencies.
Significant Recoveries for the State
In total, Lang’s office helped recover more than $1.4 million in restitution and fines, returning critical funds to state agencies, insurers, and employers. She shared the figures during an April meeting of the Workers’ Compensation Board.
Major Cases from the Inspector General’s Report
Lang’s annual report highlighted several high-impact investigations, including:
- Medlink, a Brooklyn-based medical billing provider, diverted over $1.9 million from 13 insurers. The scheme included $1.3 million stolen from the New York State Insurance Fund, funds that were meant for surgeons treating injured workers.
- A Saratoga County paving company owner ran a business with multiple employees without workers’ compensation coverage. The fraud came to light after one employee suffered an on-the-job injury.
- A UPS employee collected wage indemnity benefits for a supposed back injury while secretly working as a high school soccer coach.
- A correction officer with the New York State Department of Corrections and Community Supervision moonlighted as a bus driver while collecting lost wage benefits for an alleged work injury. The officer ultimately pleaded guilty to felony fraud and theft charges, agreeing to repay over $50,000.
A Call for Continued Oversight
Lang emphasized the importance of vigilance in identifying fraud within both public and private sectors. Her office continues to oversee workers’ compensation cases across multiple state agencies, reinforcing efforts to protect taxpayer funds and ensure benefits go only to those who qualify.
Source: New York State Inspector General – 2024 Annual Report
AQs: About New York Workers’ Comp Fraud
What is the scale of New York workers’ comp fraud in 2024?
Inspector General Lucy Lang reported $2.7 million in New York workers’ comp fraud cases in 2024, nearly 30% higher than the prior year.
Which industries were most impacted by New York workers’ comp fraud?
Fraud ranged across sectors, including medical billing, construction, logistics, and public service, highlighting vulnerabilities in both private and public systems.
How does the state respond to New York workers’ comp fraud cases?
The Inspector General’s office investigates and prosecutes fraud, often recovering restitution. In 2024, more than $1.4 million was returned to agencies and insurers.
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