Mass. Man Sentenced to Jail for Perjury, Workers’ Comp Fraud

January 24, 2006

A Gloucester, Massachusetts man has been sentenced to jail for committing perjury in relation to a workers’ compensation scheme, Attorney General Tom Reilly announced.

Timothy Hayes, 39, pleaded guilty this month to one count each of perjury and workers’ compensation fraud. Essex Superior Court Judge Thomas Billings sentenced Hayes to serve one year in the House of Corrections to be followed by probation for two years.

In July 2001, Hayes was injured while working as a residential framer for J. David Trembly Construction in Gloucester. Hayes filed a workers’ comp claim with Zurich Insurance and began receiving temporary total benefits of $215 a week.

In November 2001, Hayes had shoulder surgery and in May 2002, his benefits were reduced to partial disability benefits by the Department of Industrial Accidents (DIA) and he received $161 per week with a $90 per week earning capacity. Hayes appealed a ruling to the Department of Industrial Accidents (DIA) stating that he was unable to work.

An investigator was hired by Zurich Insurance to conduct surveillance on Hayes. In December 2002 while still claiming partial disability benefits, Hayes was reportedly observed opening the hood of his motor vehicle, extending both arms over his head and putting oil in his car. Several months later in May, an investigator reportedly videotaped Hayes working construction at a home in Gloucester, climbing a ladder and working with a hammer.

On May 23, 2003, Hayes stated to the DIA that while he was eligible for workers’ comp benefits, he had not made any earnings and testified before an administrative judge that he had not worked since the accident on July 6, 2001.

At that hearing, DIA officials and Hayes watched the surveillance tape showing Hayes performing construction. Hayes stated under oath that it was not him in the video but a friend and that he had never worked at that location.

The homeowner, contractor and accused friend reportedly later testified that it was Hayes on tape performing construction.

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