NEW YORK CITY (WABC) — An Eyewitness News investigation has uncovered a troubling pattern of construction injury lawsuits filed by individuals residing in the same apartment buildings across New York City, prompting builders and contractors to claim this indicates widespread insurance fraud within the construction industry.

When filing a lawsuit, individuals must provide their home address, allowing Eyewitness News to analyze hundreds of construction site injury lawsuits from the New York State public court filing database. The investigation revealed multiple claims originating from residents of the same buildings.

For instance, at an apartment complex on Ellis Avenue in the Bronx, 30 construction injury claims were linked to residents. Additionally, directly across the street, a two-story home also on Ellis Avenue had 21 injury claims filed. Further down the road on Haviland Avenue, 12 residents from another home reported injuries related to construction. Other locations included eight lawsuits from a building on Morrison Avenue and five from one on Stratford Avenue.

The findings were shared with Michelle Rafeld, executive director of the Coalition Against Insurance Fraud. “While I can't comment on specific cases, what I can tell you is that when you are seeing large numbers of individuals living in the same area and living in the same building all having a claim that sends up a very big red flag,” she stated. “Not only is it a red flag for insurance fraud, but it's a red flag for organized crime.”

Recently, local construction and insurance industry members gathered on Long Island to discuss these alarming trends, expressing their concerns about the prevalence of what they believe to be fraudulent lawsuits, which they argue are driving up home and food prices for all New Yorkers. Brian Sampson, president of the Empire State Chapter of the Associated Builders & Contractors, remarked, “We have a system that allows for fraudulent claims, leads to million-dollar settlements, and it raises the cost of insurance premiums across the board. We need to find a way to get it to stop.”

In another case, a home in Corona had seven lawsuits associated with it, including two from different individuals in the same apartment, both alleging construction-related injuries within a month of each other. Eyewitness News investigative reporter Kristin Thorne encountered a man entering the property, appearing injured, who confirmed he was involved in a construction accident after reviewing his lawsuit.

When asked about the other claimants living in the same building, he stated he didn’t know them and suggested they may have moved years ago. Shortly after, another resident emerged, stating the other plaintiffs had relocated to New Jersey.

The investigation not only revealed numerous construction injury lawsuits from the same residences but also found that about half—30 out of 62 lawsuits—were filed by just two law firms. Eyewitness News reached out to both firms; one did not respond, while the other declined to comment.

Additionally, inquiries were made to the New York State Trial Lawyers Association, which represents the attorneys filing these lawsuits. Despite sharing the investigation data showing the concentration of claims from similar addresses and the same legal representation, the association did not respond to requests for an interview.

Interestingly, judges from the New York State Worker’s Compensation Board determined that at least 12 of the claimants had legitimate work-related injuries and were awarded workers' compensation. Rafeld noted, “It's very easy for a fraudulent claim to get through in some cases because on paper that one single event does look legitimate.”

Eyewitness News also reached out to the New York State Inspector General regarding the investigation findings and whether they posed any concerns.The office replied:

“The Offices of the New York State Inspector General is committed to thorough, comprehensive, and independent investigations into all complaints received that fall under our jurisdiction. But as is the standard policy of this Office, in the interest of maintaining the confidentiality of complainants, witnesses, and subjects of any allegations, we do not confirm the existence or status of investigations unless and until a finding of wrongdoing is made.”

The investigation into potentially fraudulent construction accidents and slip-and-fall claims in New York City has been ongoing for the past year, with Eyewitness News seeking to expose how such fraudulent activities contribute to increasing rents and home prices in the region.