13 People From Eight Counties Arrested on Workers' Compensation Fraud Charges

March 30, 2011

Thirteen people from eight counties have been arrested on charges that they cheated New York’s workers’ compensation system, often by working side jobs while collecting benefits for injuries they pretended left them physically unable to work, including seven cases involving NYSIF investigations.

The series of arrests follow investigations by the New York State Insurance Department’s Frauds Bureau, along with investigators from the Workers’ Compensation Board Office of the Fraud Inspector General, the New York State Insurance Fund, insurance company special investigative units and local law enforcement agencies.

The cases range from a Steuben County woman accused of fraudulently collecting $10,000 in benefits while running a ceramic supply store to a Schenectady man who claimed a job-related injury prevented him from working but was caught on videotape doing odd jobs.

“It’s always wrong when people take benefits they don’t deserve and it’s particularly troubling now because resources are scarce in today’s economy. Workers’ compensation benefits need to go to people who are legitimately entitled to receive them and not to those who would cheat the system,” Insurance Superintendent James Wrynn said.

“Workers’ compensation fraud is a felony and we are on the watch for those who commit it,” said New York State Insurance Fund Chief Deputy Executive Director and Secretary to the Board of Commissioners Francine James. “With help from local law enforcement and our partner agencies in New York State we are sending a clear message – offenders will be caught.”

Read more about the cases:
13 People from Eight Counties Arrested On Charges They Illegally Scammed Workers’ Comp System