Mass. Worker Digs Hole with Comp Fraud Scam

An East Sandwich, Massachusetts man has been ordered to pay $10,000 in restitution after pleading guilty to charges he received workers’ compensation payments while holding down another job, Attorney General Tom Reilly announced.

Jeffrey Peacock, 45, pleaded guilty last Thursday to one count each of workers’ comp fraud and larceny over $250. Suffolk Superior Court Judge Carol Ball sentenced Peacock to probation for two years and ordered him to pay restitution of $10,000. He was also ordered to perform 136 hours of community service.

Peacock was employed as an ironworker for Keystone Engineering Corporation when he reportedly injured his left thumb while working on the Central Artery Tunnel Project on January 3, 2001. He filed a workers’ comp claim with National Fire Insurance and began receiving benefits in the amount of $830.89 per week. On July 9, 2001, Peacock was released back to work by his treating physician and his disability benefits were terminated.

On Dec. 16, 2002, Peacock reportedly filed a new claim with DIA claiming that he had re-aggravated the thumb injury and had stopped working on Nov. 22, 2002 due to that injury. AIG paid Peacock a retroactive check and began issuing weekly disability benefit checks in the amount of $880 per week.

A subsequent investigation by the Insurance Fraud Bureau of Massachusetts (IFB) revealed that Peacock had been employed in several contracting jobs while he was receiving disability checks.

In total, Peacock reportedly received $21,497 in workers’ comp benefits from American International Group (AIG) while working other jobs.