Veterans Affairs Firefighter Admits to $479,000 Workers’ Compensation Fraud Scheme

Westbury man continued working as a truck driver while collecting disability payments for a back injury sustained at a New Jersey VA facility.

CAMDEN, NJ – March 8, 2025 – A Veterans Affairs firefighter has pleaded guilty to workers’ compensation fraud after fraudulently collecting nearly half a million dollars in benefits while working other jobs, U.S. Attorney John Giordano announced.

Richard Hyland, 61, of Westbury, New York, admitted to the fraud scheme before U.S. District Judge Karen M. Williams in Camden federal court. He faces a maximum penalty of five years in prison and a $250,000 fine at his sentencing, scheduled for July 11, 2025.

Hyland was employed as a firefighter at the Department of Veterans Affairs' Lyons VA Medical Center in Lyons, New Jersey, when he suffered a back injury in 2014. Following his injury, he began receiving federal workers’ compensation benefits.

However, to continue receiving payments, Hyland was required to certify annually to the U.S. Department of Labor that he was not employed or volunteering elsewhere—a statement that was later revealed to be false.

According to court documents, Hyland:

• Worked as a tow truck driver as early as March 2017.
• Took a job as a long-haul truck driver while continuing to collect disability benefits.
• Volunteered at his local fire department, despite claiming he was unable to work.

Between March 2017 and December 2024, Hyland fraudulently collected $479,341.26 in workers’ compensation benefits.

Federal Investigation and Legal Consequences

The fraud scheme was uncovered through an investigation led by federal authorities, including:

• The U.S. Department of Labor, Office of the Inspector General, under Jonathan Mellone.
• The Department of Veterans Affairs, Office of the Inspector General, under Chris Algieri.

The case is being prosecuted by Assistant U.S. Attorney Joseph McFarlane of the Special Prosecutions Division in Camden.

Hyland faces:

• A maximum sentence of five years in prison.
• A fine of up to $250,000.

This case highlights ongoing federal efforts to combat fraud in government programs. Authorities encourage the public to report suspected fraud to ensure that benefits go to those who genuinely need them.

Federal prosecutors have emphasized that workers’ compensation fraud diverts critical resources from injured workers who rely on these benefits for legitimate medical conditions and lost wages.

Hyland’s sentencing in July 2025 will determine the full extent of his legal consequences.