Trying to cheat the system oftentimes leads to consequences.
It was noted recently from the United States Attorney’s Office that William Szudera, 76, of Havre, pled guilty to mail fraud. Sentencing was slated for September 26, 2013. Szudera is currently released on special conditions.
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“The 5Cs to Taking a Bulletproof Injured Worker Recorded Statement”
[/calloutIn an Offer of Proof filed by Assistant U.S. Attorney Chad Spraker, the government stated it would have proved at trial the following:
From 2001 to 2012, Szudera collected workers compensation benefit payments based on his annual representations to the Department of Labor that he was not working and earned no income. In fact, beginning in 1977, Szudera was operating a shooting supply business, which made him ineligible for approximately $277,484 in benefits he received from 2001 through 2012.
Injury on Job Goes Back to 1970
From 1970 to 1978 Szudera was employed by the Bureau of Reclamation and the Western Area Power Administration, which was absorbed into the Bureau of Reclamation in 1977. Szudera was injured on the job in 1970. He returned to work in 1971 and received compensation for a partial disability.
In 1984, Szudera was added to the Department of Labor’s permanent rolls and started receiving workers comp checks for his wage loss due to his injury. In 1992, the Department of Labor adjusted Szudera’s compensation after determining that he was able to earn a limited wage. Under that status, Szudera collected workers comp payments based on the limited wage earning capacity of a cashier. In fact, Szudera owned and operated a shooting supply business, B&G Shooting Supply since at least 2000.
In a May 2000 application for a Wells Fargo credit card, Szudera stated under the job information section that he is self-employed as an owner of a business with a gross monthly salary of $12,500. Szudera’s tax returns from 2002 to 2010 show that B&G Shooting had gross receipts ranging from approximately $500,000 to $750,000. The returns indicate a profit for every year with the exception of 2006.
Nevertheless, from 2002 to 2011, Szudera filled out annual certifications stating that he was unemployed and did not receive any outside income. The annual certifications asked Szudera to report all self-employment or involvement in business enterprises, including a family business, even if the activity was part-time or intermittent. Moreover, the certifications asked Szudera to report any work or ownership interest in a business enterprise even if the business lost money.
Interview Leads to Claimant’s Downfall
Agents of the Department of Energy interviewed Szudera in October 2011.
Szudera stated that he knew he had to report any additional income he received each year on the annual certification. When asked whether he knowingly received income yet did not report it on the annual certification, Szudera answered “yes.” Szudera’s inflated workers comp benefit checks were mailed from the U.S. Treasury to Szudera’s home in Havre.
Szudera is looking at possible penalties of two decades in prison, a $250,000 fine and three years supervised release.
Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: [email protected].
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