Construction Site Injury Fraud Allegations Spark Legal Battle in New York City

New York City’s booming construction sector is facing growing scrutiny over a surge in alleged fraudulent injury claims. With more high-rise projects than anywhere else in the country, industry stakeholders say the city has become a hotspot for staged accidents and inflated workers’ compensation lawsuits. Don Orlando of Tradesman Program Managers and veteran contractor Steve Katz claim that surveillance footage and repeated suspicious claims point to a widespread scheme involving fake falls, unnecessary surgeries, and coordinated legal actions.

According to Katz, he’s faced eight lawsuits that he believes were staged, resulting in millions in settlements and rising insurance premiums. Industry leaders argue that these costs are being passed on to customers through increased rates, ultimately driving up the price of construction projects throughout the city and potentially beyond.

However, not everyone agrees with these fraud allegations. New York attorney Nicholas Warywoda counters that many of these cases are upheld in court and warns against conflating legitimate injury claims with unproven fraud narratives. He suggests that if employers prioritized workplace safety, the number of lawsuits would decline naturally.

Meanwhile, investigative reporting has raised red flags about patterns in plaintiff addresses, suggesting potential coordination among certain groups. Tradesman has responded by filing federal racketeering lawsuits against over 100 defendants, including doctors and law firms, while critics say the insurance lobby is using fraud claims to limit injured workers’ legal options. The debate raises important questions about accountability, safety, and access to justice in one of the nation’s most dangerous industries.