Summer Scams Result in Charges Against Two on Long Island in Fraud Schemes
New York State Inspector General Lucy Lang today announced significant developments in two unrelated workers’ compensation fraud investigations involving Long Island residents who received thousands in benefits while engaging in off-the-books work — including one coaching high school soccer and another flipping cheesesteaks for his food truck business.
UPS Supervisor Coached Varsity Soccer While Collecting Workers’ Comp
Nicholas Gallagher was sentenced to a conditional discharge with community service and ordered to pay full restitution of $13,402.87. Gallagher, who had initially pleaded guilty to Petit Larceny was permitted, after performing 55 days of community service, to withdraw that misdemeanor plea and instead plead guilty to the violation of disorderly conduct, with ten remaining days of community service.
The Workers’ Compensation Fraud Inspector General (WCFIG) investigation revealed Gallagher worked as a boys’ varsity soccer coach at St. John the Baptist High School in West Islip and as a sales representative for Lacrosse Unlimited — all while collecting over $13,000 in workers’ compensation benefits.
Gallagher claimed a back injury from a workplace fall in March 2021 and subsequently informed doctors and the Workers’ Compensation Board on numerous occasions that he was not working as a result. Surveillance video and subpoenaed bank records, however, revealed a different story — that Gallagher earned more than $37,000 in unreported income during the same period from his two other jobs, including from coaching duties caught on video.
Food Truck Operator Busted for Benefits Fraud
In a separate case, Antonio Esposito, a former logistics employee at National Grid, pleaded guilty on Monday, July 28 in Suffolk County First District Court to Petit Larceny for fraudulently collecting workers’ compensation benefits while operating Espo’s Cheesesteak Factory, a mobile food truck business based in Eastport, NY. In connection with his plea, Esposito paid $27,069.84 in restitution and was sentenced to a conditional discharge.
Esposito reported a back injury in May 2021 and received over $28,000 in benefits between June 2022 and February 2023 while repeatedly telling medical professionals he was unable to work. However, surveillance footage and social media posts revealed Esposito actively working in his cheesesteak truck alongside his wife, Mascia Esposito.
The investigation also uncovered false workers’ compensation documentation claiming that no employees or unpaid volunteers worked for their company, Valmia, Inc., d/b/a Espo’s Cheesesteak Factory, to avoid having to pay workers’ compensation insurance premiums, despite video evidence showing multiple people working at the stand.
“New Yorkers have a right to expect accountability and our fight against fraud never takes a vacation,” said New York State Inspector General Lucy Lang. “Whether it’s coaching on the sidelines or serving cheesesteaks from a food truck, working while collecting disability benefits — and lying about it — is a crime. Our team will continue to investigate and hold accountable those who attempt to exploit the system.”
Inspector General Lang thanked the members of her staff who worked on the investigation, including Investigator Kevin Coleman, Investigative Auditor John Adamo, Investigative Counsel Alexandra Lane, Deputy Chief of Investigations for Downstate Regional Offices Dave Regazzi and Chief of Investigations for Downstate Regional Offices Ben Defibaugh, under the supervision of Long Island Deputy Inspector General Jean Carsey. IG Lang also expressed her appreciation to the Suffolk County District Attorney’s Office for their work in bringing these cases to justice.
The Offices of the New York State Inspector General are charged with ensuring integrity in state government, including oversight of the New York State Workers’ Compensation system through its dedicated Workers’ Compensation Fraud Inspector General unit (WCFIG). WCFIG investigates fraud committed by claimants, employers, providers, and others engaging in abuse of the system.
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The Offices of the New York State Inspector General: Fostering confidence in New York State government by promoting integrity and transparency through oversight of covered agencies, their employees, and those doing business with the State.
To report wrongdoing, call 1-800-DO-RIGHT (367-4448) or visit ig.ny.gov.
Follow the office’s work on social media at @NewYorkStateIG.
