Delaware Sub Shop Owner Faces Fraud Charges in New York

December 17, 2009

A former New York State Corrections officer who reportedly owned two Delaware sandwich shops surrendered to authorities in New York last week to face workers’ compensation fraud charges initiated by the New York State Insurance Fund.

Donald Walker, of Middleton, Del., voluntarily returned to New York at the request of Suffolk County District Attorney Thomas Spota, where he was arrested and charged with violating the state’s workers’ compensation law, a felony, according to officials.

Walker, who allegedly owned two Subway Restaurants in the Wilmington area while collecting workers’ compensation benefits from NYSIF, was the subject of a joint investigation by NYSIF’s Division of Confidential Investigations, the New York State Insurance Department Frauds Bureau, the Workers’ Compensation Board Fraud Inspector General and the Suffolk County Insurance Crime Bureau.

Investigators said he filed a back injury claim with NYSIF as a New York State correction officer on May 30, 2005, while working at Bedford Hills Correctional Facility, collecting approximately $19,695 in benefits from May 2005 to October 2007, when NYSIF suspended his compensation payments due to lack of medical proof of continued disability.

During that time, Walker lost his job as a corrections officer. Investigators said he turned up working at a Subway Restaurant in Delaware in March 2008, which he allegedly owned since June 2005. Further investigation revealed he allegedly owned a second Subway shop in Wilmington since January 2006.

During that period through July 2008, investigators stated, Walker returned signed forms to NYSIF indicating he was not working, and testified to the same at a workers’ compensation board hearing in February 2008. During that time, allegedly defrauded NYSIF of $15,485 in benefits.

Criminal complaints and indictments are accusations only. Defendants are innocent until proven guilty.

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