Report: ‘Excessive fraud’ persists among correctional workers - Business Insurance

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Report: ‘Excessive fraud’ persists among correctional workers - Business Insurance Skip to content Register for free Search Search Log In Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Risk Management Cyber Risks Pricing Trends Mergers & Acquisitions Technology Sponsored Content WSIA RISKWORLD Workers Comp & Safety Workers Comp Cost Control Pain Management Workplace Safety International EMEA Asia-Pacific Latin America People Events BI Intelligence Top 100 Agents & Brokers Best Places to Work 2025 Lists Directories Insurance Pricing BI Stock Index Magazine Current Issue Past Issues Subscribe Women to Watch ALL INsurance Resources Risk Perspectives Sponsored Content Webinars White Papers Report: ‘Excessive fraud’ persists among correctional workers by Work Comp Central Workers Comp Coverage , Workplace Safety Apr 24, 2026 Widespread misconduct, fraud and abuse among New York state correctional workers “continues to plague the system,” according to a 2025 annual report released by the Workers Compensation Fraud Inspector General. The report, released Tuesday, found that Department of Corrections and Community Supervision workers accounted for six of the 14 people arrested for alleged claimant fraud last year. The report attributes the ongoing problem to the state’s failure to modify a provision in union contracts allowing six months of full pay upon the occurrence of an occupational injury. A 2023 New York State Inspector General said the full-pay provision “appears to have created a strong motivation for fraud as well as a perverse incentive for correction officers to not return to work before those six months have been exhausted, regardless of their ability to do so.” Because the provision remains in correctional worker union contracts, excessive fraud “continues to be found involving DOCCS employees’ abuse of their contractual workers compensation benefits,” according to the new report. Cases highlighted in the report include a correctional officer who pleaded guilty to faking an injury after footage from surveillance cameras contradicted her claim that she was injured trying to restrain an inmate. The officer was sentenced in March to three years of probation and ordered to pay $40,000 in restitution. Another correctional worker pleaded guilty to a disorderly conduct charge in February 2025 for working as a massage therapist for more than six months while collecting workers compensation benefits. The officer was ordered to pay more than $41,000 in restitution and fined $120. Other examples of successfully prosecuted cases involving claimant fraud included a former mechanic who was ordered to pay more than $60,000 in restitution for working as a real estate agent while collecting benefits, and a woman ordered to pay $109,263 in restitution for signing more than 80 of her husband’s workers compensation checks after his death. In addition to 14 arrests for claimant fraud last year, authorities also arrested eight for employer fraud. Examples of employer fraud in the report include the owner of a tobacco company, whose case alleging various labor law violations that include not carrying workers compensation insurance is ongoing, and a contractor ordered to pay $88,715 in restitution for not having coverage. The 22 arrests were the result of 1,520 complaints received in 2025 that uncovered more than $1.9 million in fraud and led to criminal convictions and civil dispositions with more than $1.7 million in restitution and fines. WorkCompCentral is a sister publication of Business Insurance. More stories here . 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