Mass. Construction Worker Charged with Workers’ Compensation Fraud

March 25, 2008

A Brockton, Mass. man was arraigned on charges he collected over $9,000 in workers’ compensation benefits while he worked at two different jobs, according to the attorney general’s office.

Officials said John Stevens was charged with workers’ compensation fraud and larceny over $250.

According to officials, on May 5, 2005, Stevens, then employed by Capeway Aluminum and Vinyl, Inc., injured his ankle in a work related accident. On May 11, 2005, as a result of the on the job injury, Stevens’ insurer, AIG Insurance Co., began paying temporary total disability benefits. Stevens continued to receive benefits through March 28, 2006. During this time period, Stevens allegedly fraudulently collected a total of $9,720 in worker’s compensation benefits.

According to authorities, while he collected disability benefits, Stevens continued to work on two construction projects over a three month period from October 2005 through December 2005 and also during March 2006.

On January 15, 2006, Stevens allegedly submitted an employee earning report for the time period from May 2005 to December 2005 to AIG stating that he was entitled to benefits and earned no other wages.

But investigators from the Insurance Fraud Bureau of Massachusetts (IFB) and AIG said they found that Stevens was allegedly paid $26,000 for the contract work completed on the two construction jobs during the time period in which he reported to the DIA that he was not working.

The alleged fraud was initially detected by AIG and reported to the IFB. This case was referred to the state attorney general’s office on Oct. 10, 2007. Stevens was arraigned on March 21, 2008, in Brockton District Court where he entered a plea of not guilty and was released on his own personal recognizance.

Stevens is due back in court on May 19, 2008, for a pre-trial hearing. Judge John Canavan, III presided over the arraignment.

Source: Mass. Attorney General’s Insurance
and Unemployment Fraud Division

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