Date: September 5, 2013
ARREST AND INDICTMENT OF TEN CURRENT AND FORMER
U.S. POSTAL SERVICE EMPLOYEES AND TWO DOCTORS FOR WORKERS’ COMPENSATION FRAUD
Defendants face a combined forfeiture allegation of over $620,000.00
SAN JUAN, P.R. - On August 30, 2013 a Federal Grand Jury in the District of Puerto Rico returned twelve separate Indictments charging ten current and former U.S. Postal Service (USPS) employees and two doctors, Luis E. Faura-Clavell and Alfonso A. Madrid-Guzmán, with fraud associated with Department of Labor (DOL) Office of Workers’ Compensation Programs (OWCP). This program provides wage loss and medical benefits to employees who have become injured in the course of their official capacity within the USPS and are unable to work due to disability, announced United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez.
A two year investigation led by the USPS-Office of Inspector General (OIG), with assistance from the FBI, Social Security Administration-OIG, Health and Human Services-OIG, the DOL-OIG and the Puerto Rico Police Department targeted fraud associated with OWCP claims.
Postal Service employees are covered by the Federal Employees’ Compensation Act (FECA), which provides tax-free benefits to civilian federal employees who sustain injuries or anoccupational disease as a result of their employment. Postal employees can receive up to 75
percent if there is at least one dependent. The Postal Service is the largest FECA participant, paying more than $1 billion in benefits and $60 million in administrative fees annually.
Pursuant to OWCP guidelines, a claimant must prove that he or she is disabled by furnishing medical documentation and other evidence with their work related claim. The employee’s claim and supporting medical evidence is then evaluated by the OWCP to determine the claimant’s medical impairments and the effect of the impairment on the claimant’s ability to work on a sustained basis. Employees and Two Doctors for Workers’ Compensation Fraud
