Scarborough man sentenced to 10 months for worker’s comp fraud

Posted March 05, 2014, at 4:51 p.m.

PORTLAND, Maine — A former tractor-trailer driver for the U.S. Postal Service was sentenced Wednesday in U.S. District Court to five months in prison followed by five months of home confinement for fraudulently receiving worker’s compensation benefits.

Lawrence Moody, 63, of Scarborough also was sentenced to three years of supervised release and ordered to pay $120,000 in restitution.

He was ordered to begin serving the sentence on April 4.

In September, Moody waived indictment and pleaded guilty to federal employee compensation fraud. By pleading guilty, Moody admitted he had not reported income from his business that transported cars from Maine to southern states for snowbirds, according to court documents.

He worked for the postal service from 1987 until injuring his back in January 2001 while loading a truck, according to the prosecution version of events to which he pleaded guilty. Moody’s claim for compensation was approved two months later.

In 2007, Moody began operating a vehicle transportation business called Snowbird Express, the court document said. Moody would transport vehicles to and from Maine, often to Florida, for the winter. An undercover agent in March 2012 hired Moody to take a car to the Sunshine state for $1,425.

Each year between 2007 and Oct. 5, 2012, Moody signed a form certifying that he was not working for himself or anyone else. When agents searched Moody’s home on Oct. 24, 2012, they seized a ledger and nearly $31,000 in cash.

Assistant U.S. Attorney Halsey Frank, who prosecuted the case, estimated Moody transported between six and 12 cars per year and netted between $5,000 and $6,000 a year without reporting it.

Moody faced up to five years in federal prison and a fine of up to $250,000.

 

CORRECTION:

An earlier version of the story reported that Lawrence Moody is 62. He is 63.

Recommend this article

SEE COMMENTS →

Similar Articles

More in Portland