April 23, 2026

WRGB: $1.7 million in recovered funds, 22 arrests, headline Workers’ Compensation Fraud in 2025

New York State Inspector General Lucy Lang

Tom Eschen

April 22, 2026

Albany, NY (WRGB) — The New York State Inspector General's annual Workers Compensation Fraud Report was released this week, with 22 arrests, and $1.9 million identified ($1.7 million recovered) in fraudulent activity in 2025.

The 22 arrests are more than double the 2024 total, with six of the 22 coming from Department of Corrections and Community Supervision.

While the Office of the New York State Workers’ Compensation Fraud Inspector General (WCFIG) covers all state agencies along with businesses across the State, DOCCS continues to be an agency fraught with fraud. The issues date back to a 2023 report identifying the same issues.

"I was visiting a prison when I had a conversation with an incarcerated New Yorker who asked whether there was any way they could get more staff," Lucy Lang told CBS6. "This was several years ago, and I said, 'It's above my pay grade, but what's on your mind?' And he said, 'Well, we're really understaffed, and as a result, we haven’t been able to get our outdoor recreation.' And so when I spoke with the leadership of the facility, they explained that there were nearly 40% of the staff who were out on workers’ compensation leave. So that led us to dig into the numbers in 2023, and to report on these huge staffing deficiencies that were resulting in part from a workers’ compensation provision that enables corrections officers to get full pay while they're out on leave, and that, unfortunately, incentivizes some measure of abuse. So, we continue to see that problem persisting, and no doubt, is contributing to the myriad challenge that the State prison system is facing."

She says they've recommended changes in the contract between the Union and the State to help mitigate some of these issues, but have come with no changes.

Outside of DOCCS, the IG's office also found fraud at a Brooklyn-based tobacco company, a contractor in Liverpool, NY, and amongst medical providers.

DOCCS sent CBS6 this statement:

"DOCCS has zero tolerance for any illegal actions that negatively impact the hard working men and women who perform difficult jobs within our facilities, and our efforts to improve safety and staffing levels across the system. DOCCS Office of Special Investigations maintains regular communication with the Inspector General including on matters to combat workers compensation fraud, and will continue to provide assistance when necessary to ensure bad actors are held accountable."