Construction fraud cases rise in New York City

In New York City, a growing concern about fraud in the construction industry has emerged. Some experts claim that many accidents on job sites are being faked. These allegations come as the city continues to build more high-rise buildings than anywhere else in the U.S. Don Orlando from Tradesman Program Managers says that staged accidents are harming small construction businesses. He mentioned several cases where workers allegedly "fell" but were caught on camera pretending to fall. For instance, one man filed a lawsuit claiming injuries after simply sitting down. Orlando argues that surveillance cameras are crucial in exposing these fraudulent claims. However, not everyone agrees with this view. Attorney Nicholas Warywoda countered that if there were indeed rampant fraud, courts would dismiss such cases quickly. He expressed skepticism about the claims made by industry advocates, suggesting that proper safety measures could reduce lawsuits. Steve Katz, a construction veteran, shared his personal experiences with fraudulent claims over the years. He mentioned a case where one of his employees sued for a fall but had later been seen planning the fall in advance. Katz noted that these fraudulent lawsuits often lead to increased costs for insurance, which are then passed on to customers. In some neighborhoods, reports have surfaced of multiple claims coming from the same addresses. For example, one building in the Bronx was home to 30 plaintiffs claiming injuries from construction work. Experts like Michelle Rafield have pointed out that it's unlikely so many people from one address would have the same injuries and treatments. Orlando has accused some lawyers and doctors of being involved in the fraud, claiming they exploit undocumented workers to stage falls and then suggest unnecessary surgeries. In response, Tradesman has filed lawsuits against over 100 defendants, including medical professionals, based on racketeering charges. Defendants assert these accusations are baseless and plan to fight the lawsuits. Warywoda remarked that these allegations seem to be an attempt by the powerful insurance industry to manipulate the legal system, potentially putting workers' safety at risk.