It is possible for people to still get a paycheck when they become disabled and can’t work. The state of New York is one of the states that mandates an employer provide disability insurance benefits even if a worker in injured while off-the-job or as a result of an illness. These benefits are designed to be temporary cash benefits. They are paid to an eligible worker who is not able to perform their work as a result of an injury or illness.
Disability insurance must be provided by all employers no matter what their industry. An employer in New York must also provide their workers with disability benefits that meet the requirements of the New York State Disability Benefits Law. Such an insurance plan must be issued through an insurance carrier who is licensed by New York State. It can also be provided by an employer who has been given permission by the New York State Workers’ Compensation Board (NYSWCB) to self-insure. Should a worker exaggerate the severity of their disability or provide statements that are misleading or false about their disability, it could be considered a form of fraud.
Disability Insurance Fraud
This involves an individual trying to obtain disability insurance funds by providing false information. The two most common examples are making false claims and providing false information. It can involve many different things. It’s possible for a person to exaggerate the impact or extent of their injury with the goal of obtaining more benefits for a longer period of time. Individuals may also make misleading statements on their application concerning their alleged disability. Some people fail to report earned income they received while collecting disability benefits. Other individuals may not report any improvements in their condition that could decrease or end their disability payments.
Investigators acknowledge disability fraud can be a challenge to identify. It is more difficult to detect than another type of fraud. Most individuals receiving disability payments don’t use a walker or wheelchair. There are a number of people who utilize wheelchairs and walkers but wouldn’t qualify for disability payments. Many authentic disabilities are not able to be seen by others. It’s not easy to determine a person is committing disability fraud by simply looking at them.
Disability Insurance Fraud Charges
The type of charges a person could face after being accused of committing disability insurance fraud can very greatly. The scheme associated with the fraud, as well as the amounts of money and level of participation, are all taken into consideration to determine how a person will be charged. There are at least five degrees of disability insurance fraud in New York
A person is guilty of disability insurance fraud in the fifth degree when they commit any fraudulent act with a value of less than a thousand dollars. This is categorized as a class A misdemeanor.
A person is guilty of disability insurance fraud in the fourth degree when they commit any fraudulent act with a value of more than a thousand dollars but less than three thousand dollars. This is categorized as a class E felony.
A person is guilty of disability insurance fraud in the third degree when they commit any fraudulent act with a value of more than three thousand dollars but less than fifty thousand dollars. This is categorized as a class D felony.
A person is guilty of disability insurance fraud in the second degree when they commit any fraudulent act with a value of more than fifty thousand dollars but less than a million dollars. This is categorized as a class C felony.
A person is guilty of disability insurance fraud in the second degree when they commit any fraudulent act with a value of more than a million dollars. This is categorized as a class B felony.
The punishment given to a person who is found guilty of committing disability insurance fraud will be based on what they were found guilty of doing. They may not be able to collect disability benefits for an extended period of time. They could be subject to fines and restitution. A person may also be required to pay a penalty or fee. It is also possible for a person to receive a jail sentence of up to five years for disability insurance fraud. Anyone charged with disability insurance fraud should immediately contact a legal professional to learn their options.