News and Press Releases

Scarborough Man Sentenced for Benefits Fraud

FOR IMMEDIATE RELEASE
March 5, 2014

Contact: Halsey B. Frank
Assistant United States Attorney
Tel: (207) 780-3257

Portland, Maine: United States Attorney Thomas E. Delahanty II announced that
Lawrence E. Moody, 63, of Scarborough, Maine, was sentenced today in U.S. District Court by
Judge Nancy Torresen to five months in prison, five months of home detention and three years of
supervised release for federal workers’ compensation fraud. He was also ordered to pay
$120,000 in restitution. Moody pled guilty to the charge on September 30, 2013.

According to information presented in court, in January 2001, Moody worked as a tractor
trailer driver for the U.S. Postal Service in Portland when he injured his back loading
mail. Moody filed a claim for workers’ compensation benefits and was granted medical benefits
and income replacement benefits at a rate of 75% of his salary. Between 2006 and 2013, Moody
received about $272,000 worth of income replacement benefits. Moody was required by the
workers’ compensation program to promptly report to the U.S. Department of Labor, Office of
Workers Compensation Programs (OWCP) any improvement in his health, a return to work, and
any income he earned. He was also required to periodically certify the same information in
writing.

From 2007 to 2013, Moody operated a car hauling business known as “Snowbird
Express.” Using a pickup truck and 47-foot enclosed trailer, he hauled cars for customer to
various locations. Many customers had the defendant transport their cars to Florida for the
winter and back to Maine in the spring. Moody conducted business on a cash basis and charged
his customers by the mile. During that period, he failed to report the income he earned from
Snowbird Express to the U.S. Postal Service, OWCP, or the Internal Revenue Service.

In fashioning her sentence, Judge Torresen found that Moody fraudulently obtained
$120,000 in worker’s compensation benefits to which he was not entitled, said that her sentence
was intended to have a deterrent effect because it is difficult to detect these types of crimes, and
noted that taxpayers pay because these crimes go undetected.

The case was investigated by the U.S. Postal Service, Office of Inspector General and the
U.S. Department of Labor’s Office of Inspector General, Office of Labor Racketeering and
Fraud Investigations.

 

 

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