Double-Dippers Rarely Repay Full Restitution After Conviction, Attorney Says

Monday, November 26, 2018 | 0

A former federal prosecutor says that despite being ordered to pay restitution, most federal workers convicted of double-dipping fail to repay most of the benefits they fraudulently received.

Curtis Fallgatter

Former U.S. Attorney Curtis Fallgatter made the statement to a Florida TV news station that reported the case of a rural mail carrier who collected benefits after an injury but was later seen scuba diving, boating and riding 40-foot-tall water slides.

"They're cheating to get the funds in the first place. They're taking from the government, which means they don't have their own funds," said Fallgatter, now a fraud defense attorney in Jacksonville. 

In many cases, the convicted double-dipper will be sentenced to probation and a monthly payment schedule. But when probation ends, there's little the court can do to force further payment, Fallgatter said. 

Take the case of Susan Gissy. The Jacksonville news station reported that in 2011, she claimed she suffered a back injury while delivering the mail and began receiving federal workers' compensation benefits. Three years later, she won a permanent disability rating. In 2016, though, investigators recorded her engaging in the strenuous activity.

Gissy was found guilty of fraud and was sentenced to three years' probation and $112,000 in restitution. But the woman told the court she could pay no more than $100 a month. That means she will likely pay only a fraction of what she owes to the federal compensation program, Fallgatter said.