Massachusetts Man Arraigned in Comp Fraud Case

A Brockton, Massachusetts man has been arraigned on charges he collected more than $9,000 in workers’ compensation benefits while he worked at two different jobs. John Stevens, 58, was charged with Workers' Compensation Fraud (1 count) and Larceny Over $250 (1 count).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 Company, began paying temporary total disability benefits. Stevens reportedly continued to receive benefits through March 28, 2006. During this time period, Stevens allegedly fraudulently collected a total of $9,720 in workers' comp 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 Jan. 15, 2006, Stevens allegedly submitted an Employee Earning Report (E.E.R.) for the time period from May 2005 to December 2005 to the AIG Insurance Company stating that he was entitled to benefits and earned no other wages. Investigators from the Insurance Fraud Bureau of Massachusetts (IFB) and the AIG Insurance Company 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 the AIG Insurance Company and reported to the IFB. This case was referred to the 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.