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NYC disability insurance fraud could reach $400 million

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Many people have a genuine reason for receiving disability insurance benefits. They have been injured and are unable to work as a result of an injury. Unfortunately, there are also people who attempt to scam the system as a means of collecting money that is not due to them.

Our California readers, along with those in many other parts of the country, have been keeping up with charges against more than 100 former New York City workers who lied about psychological problems to collect insurance benefits. According to prosecutors in the case, the total amount of money scammed from Social Security disability insurance could reach $400 million. Furthermore, the fraudulent claims date back as far as 1988.

In one example, a man was starring in karate videos while simultaneously telling the New York Police Department he was disabled due to psychological problems as well as neck injuries. Over the course of 24 years, he is accused of taking $470,000. While this is a lot of money, it is only a small portion of the total fraud.

More than half of the cases result from those who claim that the 9/11 attacks left them unfit to return to the workforce. According to prosecutors, "coaches" told them how to act when being examined by doctors as well as the process for applying for benefits.

When making a claim for benefits, it is essential that the person doing so is being 100 percent truthful. Anybody who is being honest but has their claim denied can consult with an employment law attorney. With legal assistance, it is much easier to recover any money that is rightfully owed to the disabled person.

Source: CBS News, "NYC disability insurance fraud may total $400 million" Jeff Glor, Jan. 07, 2014

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