Two former employees of the U.S. Postal Service were convicted on felony offenses stemming from a scheme to defraud the United States Department of Labor’s Office of Workers’ Compensation Programs. The two former employees engaged in a scheme to receive kickbacks in exchange for their completion of falsified medical documentation and falsified forms related to travel. As a result of the fraud, they received funds from the OWCP to which they were not entitled. In total, the two former employees fraudulently billed the federal government more than $9.5 million and received more than $8.7 million in in government payments.
The defendants were each convicted on one count of conspiracy to defraud the federal government and one count of false statements or fraud to obtain federal employees’ compensation. The conspiracy count carries a maximum statutory penalty of 10 years in federal prison and a $250,000.00 fine. The false statements or fraud count carries a maximum statutory penalty of five years in federal prison and a $250,000.00 fine.