Fraud of the Week

December 19, 2016

Disability Fraud—New York

Amount: $40 million

 

In response to the first wave of disability fraud busts orchestrated by state and city law enforcement in New York, several active and retired EMS workers and three NYPD traffic enforcement agents surrendered to authorities. Seven of the accused surrendered at the 112th Precinct stationhouse where they were detained. These employees are suspected of filing false claims for short-term disability and then returning to their jobs after the claim was processed, allowing them to gather on both their insurance payouts and their regular paychecks. Several others who will be arrested subsequently claimed disability but had second jobs at outside companies.

 

The scam was unveiled when an insurance company called FDNY to verify a worker's information and was informed that the worker in question was on duty that day. Several of the arrested individuals blame the 9/11 terror attacks for their fictitious (or inflated) claimed injuries. The guilty city employees are alleged to have fraudulently charged at least $40 billion to the federal government.