Two Former Postal Employees Sentenced to Prison for Workers’ Comp Fraud

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By on April 8, 2017 in Agency News with 0 Comments

Two former employees with the Postal Service were sentenced to prison this week for fraudulently obtaining federal worker’s compensation benefits.

Margaret M. Davis, 56, of Massillon, OH, was sentenced to 18 months in prison and ordered to pay $49,249 in restitution after pleading guilty to making false statements and fraud to obtain federal employee’s compensation.

Davis falsely stated in 2015 she had not been incarcerated the prior 15 months when completing forms to continue her disability benefits under the Federal Employees’ Compensation Act when she, in fact, had, according to court documents. The USPS OIG investigation showed she completed these forms while incarcerated in an Ohio prison.

In an unrelated case, Nicole M. Gates, 33, of Wickliffe, OH, was sentenced to six months incarceration and ordered to pay $5,884 in restitution and a $2,500 fine. She was convicted by a jury to two counts of wire fraud and one count of making false statements and fraud to obtain federal employee’s compensation.

Gates, a mail carrier, falsely represented her physical limitations in connection with her receipt of workers’ compensation benefits, according to court documents and trial testimony.

“The U.S. Postal Service paid over $2.7 billion in workers compensation costs last year, the majority of which went to employees who legitimately deserve it. However, a few employees, such as Nicole Gates and Margaret Davis, choose to defraud the system to receive money they are not entitled to,” said U.S. Postal Service Office of Inspector General Special Agent in Charge Monica Weyler.

She added, “Investigations by USPS OIG special agents such as these are part of our mission of preventing and detecting criminal activity and serious misconduct within the Postal Service. Last year, with the support of the U.S. Attorney’s Office, USPS OIG investigations nationwide saved the Postal Service over $320 million in future federal workers compensation costs.”

Both cases were investigated by the U.S. Postal Service Office of Inspector General.

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.

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