Postal Workers and Doctors Charged with Workers’ Compensation Fraud

Pursuant to an investigation conducted by the Postal Service’s Office of the Inspector General, with assistance from the FBI, Social Security Administration, Department of Labor, Department of Health and Human Services, and the Puerto Rico Police Department, a grand jury in San Juan has issued 12 indictments of workers’ compensation fraud. The two-year investigation led to indictments of 10 current and former postal workers and two doctors who allegedly colluded with them to defraud the government.

The Federal Workers’ Compensation Program

Under the Federal Employees Compensation Act (FECA), a postal employee who is injured on the job can receive up to 75 percent of his or her wages at the time of injury. The claimant must initially provide medical documentation that concludes that the worker is disabled. This documentation is evaluated by the Office of Workers’ Compensation Programs and the claim is approved or rejected.

The Puerto Rico Fraud Claims

According to authorities, the investigation initially focused on the activities of one of the doctors, Luis E. Faura-Clavell, who provided documentation on behalf of a number of postal service employees who filed workers’ compensation claims. Authorities contend that the evidence demonstrated that Faura-Clavell and another physician, Alfonso A. Madrid-Guzman (also indicted), evaluated and diagnosed postal workers with the specific intent to justify a nonexistent injury so that the worker could obtain federal workers’ compensation benefits. In exchange for the bogus reports, the doctors would charge fees of up to $1,600.

The investigation also found that six of the 10 indicted postal workers had also filed for and fraudulently obtained Social Security disability income payments. The government has sought forfeiture of all payments received, totaling more than $620,000.

The U.S. Postal Service is the largest participant in the federal workers’ compensation program, paying more than $1 billion in benefits every year.

Contact Uliase & Uliase

At Uliase & Uliase, our attorneys have considerable knowledge of the laws governing federal workers. To schedule an appointment, contact our office online or call us at (856) 310-9002. We will meet with you weekdays between 9 a.m. and 5 p.m. We offer a free consultation for injured workers.