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Investigative Press Release
Feb
07
2019

Former USPS Carrier Sentenced for Defrauding Federal Employee Disability Benefit Program

CONCORD – Kenneth Dunn, 60, of Nashua, was sentenced to 36 months of probation and 6 months of home confinement for making false statements to obtain federal employee disability benefits, announced United States Attorney Scott W. Murray.

The United States Department of Labor, Office of Workers’ Compensation Program (“OWCP”) provides workers’ compensation benefits to employees of the federal government, including the United States Postal Service (USPS), who are totally or partially disabled due to injuries sustained during the course of their employment. While receiving the benefits, a disabled employee is required to report all employment for which he or she received a salary, wage, or payment of any kind in annual reports submitted to the OWCP. A disabled employee is also required to provide documentation from a medical doctor to demonstrate his or her continued eligibility for the benefits and report any improvements to his or her physical condition.

According to documents and statements made in court, Dunn was hired as a Rural Letter Carrier in April 1985. In November 2010, Dunn began to receive OWCP disability benefits due to employment-related injuries to his neck, back, and arm. While receiving the disability benefits, Dunn repeatedly reported to the OWCP that was not able to work in any capacity and he was not engaged in any employment activity.

However, from 2010 through 2017, Dunn conducted thousands of transactions related to the purchase and sale of comic books on the internet, and failed to report the business activity to the OWCP. In addition, on several occasions from October of 2016 to February of 2018, a Special Agent from the Office of Inspector General for the USPS observed Dunn engaged in physical activities inconsistent with his reported symptoms and alleged total disability.

“The federal Workers’ Compensation program was created to help those who are recovering from injuries obtained on-the-job,” stated USPS-OIG Special Agent-in-Charge Matthew Modafferi. “When a former Postal Service employee defrauds the Workers' Compensation program, the Special Agents of the U.S. Postal Service Office of Inspector General will work tirelessly with the U.S. Attorney’s Office to protect the integrity of this federal benefit program.”

The case was investigated by the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Robert M. Kinsella.