Texas Letter Carrier Sentenced To 18 Months in Prison for workers comp fraud
Defendant Claimed Reimbursement for More than 500,000 Miles Driven to/from Doctor’s Appointments in Workers’ Compensation Claim
DALLAS — Keldrick Hamilton, 34, of Desoto, Texas, was sentenced yesterday afternoon by U.S. District Judge Sam A. Lindsay to 18 months in federal prison and ordered to pay nearly $230,000 in restitution to the U.S. Department of Labor (DOL) for stealing government funds related to Office of Workers’ Compensation Program (OWCP) claims he filed, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to documents filed in the case, in September 2002, Hamilton, who worked as a U.S. Postal Service Letter Carrier at the Joe Pool Station in Dallas, filed for workers’ compensation after injuring a foot while delivering mail. The OWCP allows federal employees who sustain on-the-job injuries to receive medical payments and compensation benefits, including reimbursement for medically-related travel. His claim was accepted and he began visiting medical providers in late 2002.
Hamilton admitted, however, that from January 2007 through mid-November 2010, he defrauded the DOL OWCP by fraudulently claiming approximately $230,000 in mileage reimbursements, representing approximately 500,000 miles driven, for physician and rehabilitation appointments he did not attend. In fact, during that time frame, he did not visit any medical or rehabilitation facility, and thus did not incur any mileage costs.
The investigation was handled by the DOL-Office of Inspector General and the U.S. Postal Service – Office of Inspector General. Assistant U.S. Attorney Aaron Wiley and Special Assistant U.S. Attorney Stephanie Toussaint prosecuted.
source: U.S. Attorney’s Office, Northern District of Texas
OWCP Issues Statement Regarding USPS, Align Networks Partnership For Physical Therapy Services
Apparently , APWU is not alone with our concerns regarding the partnership between the Postal Service and Align Networks.
Recent communications from the United States Postal Service and Align Networks generated enough distress among OWCP officials that its Division of Federal Employees’ Compensation issued a statement earlier today on its website that asserts OWCP as the only authority with the power to determine what medical care will be authorized. It emphasizes medical providers are not required to refer claimants to Align Networks for authorization for physical therapy and that postal employees are not required to use Align Networks, or affiliated physical therapists for scheduling or treatment of a condition approved by OWCP under the Federal Employees’ Compensation Act. The posting clarifies the authorization and billing processes, and deflates the Postal Service’s notion that utilization of Align Networks will save employees money. Read more
California Postal Worker Sentenced To Prison For Workers’ Compensation Fraud
Filed under: owcp, postal, postal news, press releases, usdoj
January 9,2012
FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced that today Chief United States District Judge Anthony W. Ishii sentenced Karina S. Beard, 44, of Turlock, to one year in prison, to be followed by three years of supervised release, for four counts of mail fraud and two counts of federal workers’ compensation fraud. Beard was also ordered to pay $81,694 in restitution. Read more
APWU-Supported Workers’ Compensation Bill Passes House
Legislator Criticizes Postal Bills’ Approach to Injured Workers
The House of Representatives passed bi-partisan legislation supported by the APWU to update benefits for injured federal and postal workers on Nov. 29. Introduced in the House by Education and the Workforce Committee Chairman John Kline (R-MN), the bill was co-sponsored by Ranking Minority Member George Miller (D-CA), Rep. Tim Walberg (R-MI), and Rep. Lynn Woolsey (D-CA), and was approved by a voice vote.
The bill (H.R. 2465 [PDF]) would raise benefits for funeral expenses (to $6,000) and compensation for facial disfigurement (to $50,0000); these benefits have not been increased since 1949. The bill also would streamline the claims process for workers who sustain a traumatic injury in an armed-conflict zone; permit physician assistants and nurse practitioners to certify disability for traumatic injuries, and label injuries sustained due to terrorism as “war-risk hazards.”
Speaking on the House floor during consideration of the bill, Rep. Woolsey criticized the approach taken in a Senate and House committee during consideration of the 21 st Century Postal Service Act of 2011 (S. 1789), and the Postal Reform Act of 2011 (H.R. 2309), respectively.
“I was disappointed to see that the Senate Committee on Homeland Security and Government Affairs has reported out postal reform legislation that adopted many of the Department of Labor’s proposals to cut FECA, and then went a step further and cut them even more deeply, without having first undertaken an analysis of the impacts,” she said. “The Senate committee even imposed some of these cuts retroactively. Frankly, taking a meat axe to the FECA program without first doing your homework is irresponsible. It is my hope that the legislation before us today, coupled with a bi-partisan commitment to study the matter with care, can serve as an example for the correct path forward for improving FECA.”
In reference to the House bill, Woolsey said:
“I was also troubled to learn that the House Committee on Oversight and Government Reform decided to include changes to FECA in a postal reform bill that would create a separate postal workers’ compensation system outside of FECA. All federal workers should be covered under the same workers’ compensation system, regardless of which agency employs them. Pursuant to House Rules, workers’ compensation programs, including FECA, have been within the primary jurisdiction of the House Committee on Education and Workforce, and I expect that Members of our committee will have an opportunity to weigh in on that bill before it moves forward.”
Consideration of the legislation follows a hearing earlier in the year entitled, “Reviewing Workers’ Compensation for Federal Employees.” APWU Human Relations Director Sue Carney testified [PDF] on behalf of postal and federal employees.
In July 2011, the Education and Workforce Committee asked the Government Accountability Office (GAO) to evaluate the consequences of administration proposals to modify FECA-related benefit levels when permanently injured employees reach Social Security retirement age; reduce benefit levels for individuals with dependents; and establish a three-day waiting period before FECA benefits can begin. The committee has indicated that no further consideration of changes to the Federal Employee Compensation Act is likely until GAO’s evaluation is completed.
OWCP Cant’ Pay Injured Federal Employees If USPS Defaults on Upcoming $1.2B Payment
WASHINGTON (Reuters) – A fund that compensates federal employees for work-related injuries will run out of cash in the last quarter of 2012 if the U.S. Postal Service defaults on an upcoming $1.2 billion payment, according to the Labor Department.
The mail carrier, which has been losing billions of dollars each year, has more than 560,000 full-time employees and is the largest employer of workers covered by the Federal Employees’ Compensation Act. Read more
GAO seeking public help in finding Employees abusing Federal Workers’ Comp Program
Filed under: GAO, Injured On Duty, owcp, postal, postal news, press releases
GAO issued the following press release:
Believe You’ve Seen Evidence of Workers’ Compensation Fraud? Contact GAO
Abuse of benefits by federal employees can be reported anonymously
WASHINGTON, DC (July 14, 2011) – The U.S. Government Accountability Office (GAO) is investigating fraud and abuse in the Federal Employees’ Compensation Act (FECA) program. Specifically, GAO is looking for information on cases in which federal employees are currently abusing workers compensation benefits.
For example, fraud schemes might include a beneficiary working a second job, overstating their workers’ compensation claim, or collecting benefits for a deceased individual. Anyone with information regarding fraud or abuse of the FECA program by federal employees is encouraged to contact us at workerscompfraud@gao.gov. All information about individuals who contact us will be kept confidential.
For media inquiries about this announcement, contact Chuck Young, Managing Director of Public Affairs, at 202-512-4800.
OWCP announces final rule updating procedures for Federal Workers’ Compensation Act claims
Filed under: Dept. of Labor, owcp, postal, postal news, press releases
Agency issues first major regulation updates since 1999
WASHINGTON — The U.S. Department of Labor’s Office of Workers’ Compensation Programs today released a final rule that revises and modernizes the procedures used in administering claims under the Federal Employees’ Compensation Act. The rule, published in the June 28 Federal Register, modernizes those procedures to increase fairness and efficiency, updates the regulations to account for recent statutory changes and incorporates advances in technology that preserve administrative resources. Read more
Former Indiana letter carrier charged with workers comp benefits fraud
Filed under: owcp, postal, postal news, press releases, usdoj, usps
June 16, 2011 – Hammond, Indiana—The United States Attorney’s Office announced the following:
Chopper Loughran, 29, of Lake Station, Indiana, was charged in an indictment with two counts of making false statements in connection with Federal Workers’ Compensation Benefits. Loughran was employed as a United States Postal Service Letter Carrier at the Glen Park, Indiana Station starting on February 2, 2008. On July 18, 2008, she claimed a work-related injury to her right foot. Soon after her injury, the Defendant began submitting Travel Forms in connection with travel that she claimed was medically necessary. Count one of the indictment alleges that Loughran submitted mileage reimbursement claims for medical appointments on dates when she did not actually visit the medical offices; submitted inflated mileage reimbursement claims for medical appointments; and submitted childcare reimbursement claims related to medical appointments on dates that she did not visit those offices. Count two of the indictment alleges that Loughran asserted that she was not self employed or involved in any business enterprise during the timeframes at issue, when, in fact, she operated an eBay business.
These charges were filed as the result of an investigation by the United States Postal Service-Office of the Inspector General, and the US Department of Labor-Office of the Inspector General. This case has been assigned to and will be prosecuted by Assistant United States Attorney Thomas Ratcliffe.
Two Postal Workers, Psychologist Charged In $1 million Workers Comp Fraud Scheme
(June 14) A Whittier psychologist was arrested this morning following his indictment for allegedly orchestrating a scheme to bill the federal government nearly $1 million for medical treatments for fabricated psychological conditions.
The indictment handed down June 8 charges clinical psychologist Arnold P. Nerenberg, 69, co-founder of the Whittier-based World Legion of Power bodybuilding organization, with seven counts of mail fraud.
Also charged in the case are two ex-postal workers, Lois L. Washington, 47, of Inglewood, and Cetric T. Fletcher, 51, of Long Beach. Washington and Fletcher are each charged with two counts of mail fraud, and are also each accused of two counts of making false statements to obtain federal employee’s compensation. Read more
Federal Disability Retirement for Postal Employees: Does the NRP Guarantee Success?
Editorial by Attorney Robert R. McGill, an exclusive to PostalReporter.com
In preparing, formulating and filing for Federal Disability Retirement benefits under FERS or CSRS, one of the issues which always must be confronted is whether or not the U.S. Postal Service can accommodate an individual’s medical conditions, and the letters which are issued by the U.S. Postal Service as a result of the National Reassessment Process, might give some comfort to the Postal Worker that the issue of accommodation might be satisfied, and therefore that the chances of obtaining an approval of a Federal Disability Retirement application might be greatly enhanced. Such a belief, however, might result not only in a potential miscalculation, but lead one into a fatal error based upon wrong assumptions. Read more