NEW YORK — City investigators raised concerns Monday over a surge in workers’ compensation claims from jail staff, announcing the arrests of three correction officers accused of fraudulently collecting nearly $1 million in injury payouts.
According to a new report by the Department of Investigation (DOI), New York City paid over $1 billion to Department of Correction (DOC) workers over the past three fiscal years. In contrast, all other city agencies combined paid about $600 million.
“New York City’s Workers’ Compensation costs have soared, largely due to DOC claims,” said DOI Commissioner Jocelyn Strauber.
The report reveals DOC compensation costs have risen 337% since 2015 — from $78 million to over $340 million in 2024. Meanwhile, other agencies saw a much smaller increase of 65%, from $135 million to $223 million.
Amid these alarming figures, federal prosecutors charged three officers — Todd Faustin, 43; Jovanny Concepcion, 33; and Steven Murphy, 31 — with health care fraud, mail fraud, and false statements for allegedly falsifying injury claims related to encounters with inmates.
Court documents allege the three collected almost $1 million in fraudulent benefits and could face up to 20 years in prison if convicted.
The DOI report pointed to a spike in “schedule loss of use” claims, which allow for lump-sum payouts even when the employee keeps working. These often involve soft-tissue injuries that don’t require time off.
DOC officials noted that claims dropped 21% last year and that they are reviewing the DOI’s recommendations. These include creating a director of workplace safety and overhauling outdated claim procedures.
“The DOC does not tolerate corruption,” said department spokesperson Patrick Gallahue, adding that the agency will continue working with law enforcement to stop compensation fraud.
The Correction Officers’ Benevolent Association (COBA) defended most officers, saying they face real danger.
“Officers suffer serious injuries like broken bones and stab wounds,” said COBA President Benny Boscio. He argued that the three arrested officers are just a small subset and should not be used to generalize the entire workforce.
The arrests and report come at a time of increasing federal oversight. Last week, a judge approved an outside monitor to discipline staff at Rikers Island and rebuild trust with officers amid longstanding concerns about abuse and misconduct.
