New York City Construction Worker Implicated in Fraudulent Workers’ Comp Claim

A Queens resident becomes an unwitting figure in a deceptive plot exploiting New York’s construction sector and workers’ compensation system. This individual, ensnared in a legal tangle, was falsely named in a workers’ compensation claim and lawsuit for an alleged accident at a Brooklyn construction site—an incident that never transpired.

The scheme unfolded when this individual was approached under the guise of employment opportunities within the construction industry. After signing what was presented as a job application, a significant check from a pre-settlement funding company was received and partially redirected as instructed by an acquaintance, leaving the individual with a portion of the funds. This act unknowingly entangled him in a fraudulent claim alleging severe injuries from a fall that purportedly left him bedridden, according to lawsuit filings.

Investigations revealed that the individual had no connections to the implicated construction site or company. Despite these revelations, the lawsuit proceeded, falsely alleging negligence on the part of the property owners and developers for failing to ensure a safe working environment.

This incident is part of a wider issue of fraudulent workers’ compensation claims that has been plaguing New York, driving up insurance premiums for homeowners and renters alike. The fraudulent activities exploit New York Labor Laws 240 and 241, which assign full liability to property owners for worker falls, regardless of the worker’s own negligence. This unique legal stance has inadvertently fostered an environment ripe for such scams.

Efforts to address and combat these fraudulent practices are ongoing, with industry insiders and insurers pushing for legislative changes to curb the exploitation of New York’s worker compensation laws. The aim is to protect legitimate claims and ensure the sustainability of the construction industry’s insurance framework, safeguarding against artificially inflated premiums caused by fraudulent activities.