Chambersburg Man Indicted For Federal Workers' Compensation Fraud

HARRISBURG -  The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Chambersburg man has been indicted by a federal grand jury in Harrisburg on a charge of theft and fraud regarding federal workers’ compensation benefits he received from 2011 through 2014.

According to United States Attorney Peter Smith, Chad McClure, age 45, of Chambersburg, PA was charged in an five count indictment with fraudulently receiving $143,475.41 in benefits paid out under the Federal Employees Compensation Act (FECA). The Department of Labor’s Office of Workers’ Compensation administers the FECA program. The indictment alleges that McClure was a civilian employee of the U.S. Army Corps of Engineers.  In 2009, he went out on a disability claim.  From April 2011 through 2014, McClure, who claimed a work-related injury, concealed his employment and affiliation with, CM Pig Out, a catering services firm, during this same time period he submitted the forms each year by the Office of Workers’ Compensation for benefits to continue to be paid.

The case was investigated by the by the United States Department of Labor’s Office of Inspector General’s Office of Labor Racketeering and Fraud Investigations. Prosecution is assigned to Assistant United States Attorney William A. Behe.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law is 10 years of imprisonment on each count of theft and 5 years on each count alleging FECA program fraud, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

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