Under False Pretenses

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When criminals commit fraud, they do it under false pretenses. (They are lying about who they are or what they are doing in order to gain what they do not deserve.) A story posted on CorrectionsOne.com tells about a man who failed to disclose that he was working and receiving income while officially declared to be permanently disabled. (It’s never a good idea to moonlight while receiving benefits from the government.)

The article reports that the man suffered a job-related injury while working as a correctional officer. He was evaluated over several years by multiple doctors and a judge declared him totally disabled six years after the injury occurred. (He was able to collect workers’ compensation, assault pay and retirement benefits totaling more than 100 percent of what he was making as a correctional officer.)

The story goes on to say that while he was collecting government benefits for his injury, he also was working and receiving income from a car dealership registered in his wife’s name. (As you might guess, he failed to report the additional income to the government.) As a result of his illegal actions, he was overpaid $423,000 in workers’ compensation benefits, assault pay, retirement benefits and Social Security benefits.

The 42-year-old man pleaded guilty to workers’ compensation fraud and larceny. He was ordered to complete five years of probation and pay more than $305,000 in restitution. (What about the other $118,000?) His business partner also pleaded guilty to larceny and paid $22,230 in restitution.

Workers’ compensation is supposed to pay benefits to those individuals who are unable to work because of work related injuries. Because this fraudster operated under false pretenses, he was able to scam his employer, his doctors and a judge. (He’s lucky he got off with probation and did not serve any jail time.) Let’s hope this criminal understands that when you lie to the government, you will eventually be caught.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Disabled Correctional Officer Pleads Guilty to Fraud, Larceny,” posted by CorrectionsOne.com on June 2, 2015.

BOSTON — A correctional officer receiving worker’s compensation while he ran car dealerships has been ordered to pay over $305,000 in restitution and complete five years of probation.

Business Insurance reports that Paul Mahan, 42, pleaded guilty to workers comp fraud and larceny.

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Larry Benson, Senior Director of Strategic Alliances, LexisNexis Risk Solutions - Government

Larry Benson is responsible for developing strategic partnerships and solutions for the government vertical. His expertise focuses on how government programs are defrauded by criminal groups, and the approaches necessary to prevent them from succeeding.

Mr. Benson has 30 years of experience in sales and business development. Before joining LexisNexis® Risk Solutions, he spent 12 years founding and managing two software technology startups. During the 1990s he spent 10 years as a Regional Director helping to grow a New England-based technology company from 300 employees to 7,000. He started his career with Martin Marietta Aerospace working on laser guided weapons and day/night vision systems.

A sought-after speaker and accomplished writer, Mr. Benson is the principal author of “Fraud of the Day,” a website dedicated to educating government officials about how criminals are defrauding government programs. He has co-authored WTF? Where’s the Fraud? How to Unmask and Stop Identity Fraud’s Drain on Our Government, and Data Personified, How Fraud is Changing the Meaning of Identity.

Benson holds a Bachelor of Science in Physics from Albright College, and earned two graduate degrees – a Master of Business Administration from Florida Institute of Technology, and a Master of Science in Engineering from Lehigh University.