Mass. Man Arraigned on Work Comp Fraud Charges

A Gardner, Massachusetts man has been arraigned in Worcester Superior Court in connection with fraudulently obtaining workers’ compensation benefits as a result of injuries he sustained during a robbery he reportedly staged with his friend. Erik Teong, age 30, was arraigned on charges of Workers’ Compensation Fraud and Larceny over $250.

The Attorney General’s Office began an investigation in January 2008 after the matter was referred by the Insurance Fraud Bureau (IFB). Teong was the manager of a gas station in Gardner. He was also the friend of the manager of another gas station in the area, and both men would normally go together to the local bank to deposit the gas stations’ funds.

On Oct. 28, 2006, Teong reported to Gardner Police that he was assaulted while walking to meet the manager of the other gas station, and the perpetrator stole the deposit. Teong suffered injuries that ultimately required him to miss several weeks of work. Investigators allege that Teong then filed for workers’ comp benefits from American Insurance Group (AIG), his gas station’s workers’ comp carrier, because of his alleged job-related injury. Authorities allege that Teong collected over $3,000 in benefits from AIG, and nearly $16,000 to cover his medical expenses. Teong allegedly cashed five benefits checks.

In February 2007, Teong contacted the Gardner Police Department and admitted to staging the robbery. Upon receiving information that Teong made false statements in order to receive workers’ comp benefits, AIG referred the matter to the IFB, who then referred the case to the Attorney General’s Office.

A Worcester County Grand Jury returned indictments against Teong on June 20, 2008. He was arraigned in Worcester Superior Court, where he pled not guilty and released on personal recognizance. He is scheduled to appear in court on Aug. 5, 2008, for a pre-trial conference.