Former Postal Service Worker Admits to Stealing Over $100K In Federal WC Benefits

St. Paul, MN (WorkersCompensation.com) - An ex-employee of the U.S. Postal Service in Minnesota, has pleaded guilty to workers' compensation fraud. Authorities say 57 year- old Lisa was fraudulently collecting benefits for more than three-and-a-half years.

According to the defendant's guilty plea agreement obtained by WorkersCompensation.com from September 2015 through at least May 3, 2019 the defendant knowingly claimed Federal Employees' Compensation Act (FECA) benefits by falsely asserting that an occupational injury prevented her from working in a full-time capacity.

Shafer had told her treating physician that her medical condition required her to rest most of the day and that she could tolerate only sedentary work. The physician accordingly limited her to no more than two hours of office work a day. This restriction enabled the defendant to collect FECA benefits due to her purported work-related injury.

However, authorities say during this time period Shafer participated in approximately 30-40 dog- agility competitions. The USPS’ Office of Inspector General led an investigation and recorded her participating in these competitions, which showed her running around arenas, bending quickly at the waist, and using large arm movements to navigate dogs through a variety of exercises. When confronted with the videos, the defendant's treating physician stated that she could have been working an 8-hour workday since September 18, 2015.

"The American public trusts that U.S. Postal Service employees will obey the law. When an employee of the Postal Service violates that trust, the USPS OIG investigates those matters,” said Special Agent-in-Charge John D. Masters, Western Area Field Office, USPS’ OIG, in a press release. “Today's plea sends a clear message that workers' compensation fraud is a federal crime, which carries serious consequences. The USPS OIG, along with the U.S. Attorney's Office, remain committed to safeguarding the integrity of the workers' compensation program and ensuring the accountability and integrity of U.S. Postal Service employees."

In exchange for Shafer's guilty plea, the U.S. Attorney's Office said that they would spare her a prison sentence, which, under federal guidelines could have been between 10 and 16 months. At sentencing, the agency will recommend probation, 109 hours of community service as well as full restitution. Schafer had collected approximately $108,490 in federal disability benefits.

Schafer voluntarily retired from the United States Postal Service earlier this year. In exchange for the concessions contained in her agreement, she prospectively agrees not to seek out, apply for, or accept any position of employment with the United States Postal Service. Her sentencing date has not yet been set.

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