New York state officials recently reported developments in two 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.
According to State Inspector General Lucy Lang, Nicholas Gallagher, a UPS supervisor, told the Workers’ Compensation Board he was unable to work since he injured his back in a workplace fall in March 2021. However, surveillance video and subpoenaed bank records revealed that Gallagher earned more than $37,000 in unreported income during this period from two other jobs, including coaching 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 more than $13,000 in workers’ compensation benefits.
The Workers’ Compensation Fraud Inspector General (WCFIG) revealed Gallagher’s scheme, including catching him coaching soccer video. Gallagher was sentenced to a conditional discharge with community service and ordered to pay full restitution of $13,402.87.
The 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.
Food Truck Operator
In a separate case, Inspector General Lang reported that Antonio Esposito, a former logistics employee at National Grid, pleaded guilty in late July in Suffolk County First District Court to fraudulently collecting workers’ compensation benefits while operating Espo’s Cheesesteak Factory, a mobile food truck business based in Eastport.
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, according to officials. However, officials said surveillance footage and social media posts revealed Esposito actively working in his cheesesteak truck alongside his wife.
According to Lang, the investigators also uncovered false documentation claiming that no employees or unpaid volunteers worked for their company in order to avoid workers’ compensation insurance premiums, despite video evidence showing multiple people working at the stand.
Esposito paid $27,069.84 in restitution and was sentenced to a conditional discharge.
“New Yorkers have a right to expect accountability and our fight against fraud never takes a vacation,” said Lang, whose office includes the workers’ compensation fraud unit.
Topics
Workers’ Compensation
Interested in Workers Comp?
Get automatic alerts for this topic.
