A Scarborough man was sentenced in U.S. District Court in Portland Thursday for filing a false document in relation to a workers’ compensation claim, according to a news release from U.S. Attorney Darcie N. McElwee.
U.S. District Judge D. Brock Hornby sentenced Michael Collins, 63, to three years of probation. In addition, Judge Hornby ordered Collins to pay $12,682.74 in restitution to Bath Iron Works. Collins pleaded guilty on June 21.
Citing court records, McElwee’s office stated that Collins was an electrician at BIW when he filed a claim under the Longshore and Harbor Workers’ Compensation Act in May 2018, claiming he suffered a work-related injury that left him totally disabled.
BIW did not contest the claim and Collins began receiving benefit payments and medical treatment payments.
In September 2018, the adjuster handling the claim became suspicious that Collins may have been working while still claiming to be disabled. The adjuster hired a private investigator, who conducted surveillance throughout the ensuing months. Surveillance revealed that Collins was working as a self-employed electrician, according to McElwee’s office.
In January 2019, Collins falsely claimed on a form that he did not have any earnings from employment or self-employment.
His conduct caused BIW to suffer a loss of $12,682.74.
“We build ships for the United States Navy,” Jon Fitzgerald, vice president and corporation counsel for Bath Iron Works said in a statement to The Times Record.
“Workers compensation fraud affects the cost of building ships, so the taxpayers are the victims of fraud unless it is uncovered … We appreciate that the U.S. Attorney was responsive to the need to address and deter this conduct as well as for protecting the taxpayers’ dollars.”
The U.S. Department of Labor – Office of Inspector General investigated the case.
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