Dear Gov. Hochul and AG James:
We, the undersigned members of the New York State Assembly, call for an immediate and thorough investigation into credible and increasingly concerning evidence that the integrity and proper functioning of the New York State Workers’ Compensation Board (“WCB” or “the Board”) have been compromised by private insurance entities, including Tradesman Program Manager (“Tradesman”), Roosevelt Road Re, and Ionian Re. These entities — long regarded as “shadow insurers” — appear to have exerted improper influence over Board proceedings in a manner that not only undermines the statutory rights of injured workers under New York law, but also poses a serious threat to the stabil ity and credibility of the State’s entire workers’ compensation system. This system constitutes a foundational component of New York’s labor and employment
infrastructure and is essential to ensuring both public welfare and economic stability statewide.
Recent petitions filed by Dr. Joseph Weinstein and Dr. Vadim Lerman show that the WCB denied their medical authorizations not through an impartial or independent review, but by adopting defamatory allegations supplied directly by Tradesman and its allies. Even more troubling, an email dated March I, 2024, reveals that industry insiders boasted of working with WCB officials to ensure that “wiping these guys out will be a big win for the industry.” This email, which directly referenced Tradesman’s counsel and the involvement of the Special Investigations Unit at NYC Transit, underscores the unlawful collusion at the heart of these so-called investigations. The damage is systemic. (See enclosures).
Dozens of physicians with long and unblemished records have either had their licenses revoked or have simply chosen not to reapply, recognizing the open secret that the WCB has been compromised. The chilling effect of this compromise, in conjunction with WCB’s improper program of tacit bullying of licensed physicians, has created a provider shortage that leaves injured workers waiting longer for treatment, with fewer specialists willing to risk retaliation by insurers, their allies and likely the Board itself.
We are also particularly alarmed by evidence that Stephen Scotti, Executive Director of the Workers’ Compensation Board, has been directly involved in this process. The March 1, 2024, email makes clear that insurance industry stakeholders were in active communication with him at the very moment Tradesman launched a public campaign against injured workers. The alignment of timing and messaging raises serious questions as to whether the Board ‘s ” investigations” and subsequent findings were influenced-or even dictated-by private insurers seeking to drive providers from the system for their own financial gain. From all reports received, it is now apparent that the senior staff at the Board and possibly the Board itself, may have opted to set aside the fact that the workers’ compensation system exists to safeguard New Yorker’s hurt on the job, not to serve insurers intent on cutting costs and silencing those who treat and represent the injured.
Nonetheless, because New York State law gives the Board the authority to adjudicate claims, it is critically important to ensure that injured workers receive the benefits to which they are entitled with a clear mandate that the Board make decisions impartially, fairly, and based on the substantial rights afforded to workers under New York law. We are confident that you are in agreement with the undersigned that the WCB and its staff are duty bound under New York State law to attend to their duties and carry out our mandate when assessing each injured worker’s claims.
However, even though the Board’s duty is to ensure that employees injured in work-related accidents receive benefits promptly, as aprimafacie priority, from the reports received (with only a sampling presented above), it is evident that the WCB’s current practices and ad hoc policies contravene our State’s strong public policy in favor of compensability. These facts demand immediate Executive Branch oversight of and action against the WCB. To that end, we request the following immediate action :
(1) That your office undertake a thorough investigation into the Workers’ Compensation Board ‘s recent internal ” investigations” and findings; critically assess its reliance on unproven civil allegations that have been repeatedly dismissed; and fully examine the nature and extent of Mr.Scotti’s relationship with the insurance industry stakeholders identified in the March 1 correspondence.
(2) That WCB executive director, Steven Scotti, be relieved of his duties-either by suspension or termination – while the investigation is ongoing; and-
(3) That the Executive Branch of our highly-regarded and respected New York State Government
The leader among leaders nationwide in the current climate facing workers and those who champion their rights – consider proposing additional legislation or adopting regulations to ensure that the appearance of impropriety that is now the result of the current modus operandi of the WCB
is addressed with due and deliberate speed.
We write with the degree of urgency expressed herein, to address the fact that the Board is not currently functioning in a manner that comports with our state’s workers’ compensation policy, and to ASK that this be addressed immediately by your offices. The People of our Great State of New York deserve no less.
Now more than ever, the People of our Great State New York deserve assurances from the Executive branch of our government that the state agency entrusted with protecting injured workers has instead become a vehicle for industry collusion and suppression of care. Accordingly, we urge you to act swiftly to restore integrity, independence, and accountability to this critical public health system.
NYS Assembly Members in Service,
Nikki Lucas
Latrice M. Walker. Esq.
Khaleel Anderson
Monique Chandler-Waterman
Jordan Wright
cc: Freida D. Foster
New York State Workers’ Compensation Board, Chair
328 State Street, Room 440
Schenectady, New York
