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Gaetano J. Williams, 48, of Glenn Avenue, was arrested by Watertown police.
Williams received wage replacement benefits during a three-month period in 2009. He received the benefits after suffering a job-related arm injury while working at the Cape Vincent Correctional Facility in Jefferson County.
Investigators allege that he worked a construction job and filed reports stating he was physically unable to work while receiving the benefits.
Williams was charged with insurance fraud, workers' compensation fraud and offering a false instrument for filing. He was released pending future action in Jefferson County Court. If he is convicted, Williams could be sentenced to up to seven years in prison.
The Insurance Department's Frauds Bureau, the New York State Insurance Fund, the Workers' Compensation Board Office of the Fraud Inspector General, the Department of Correctional Services and the Workers' Compensation Fraud Unit investigated the case.
The case is being prosecuted by the office of District Attorney Cindy F. Intschert.
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