Bold-faced Lie

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31449392 - closeup of leg on bandage with crutches

It is amazing how many people commit fraud by telling bold-faced lies. (In their brazenness, criminals usually don’t consider the repercussions of their actions until they are caught.) A story published by The Kent Reporter tells about a middle-aged man who lied about his physical condition in order to collect disability benefits while competing in BMX bike races.

The article states that for nearly two years, the 52-year-old man received $14,422 in workers’ compensation benefits due to an injury he sustained while lifting a heavy box at his ground maintenance job. In the meantime, he was racing BMX bicycles across the Pacific Northwest and Nevada. (BMX racing occurs on a physically demanding, off-road dirt course and requires riders to make complicated jumps in the air.)

The fraudster’s cover was blown after being caught on video tape competing in two BMX races. Investigators also found more information about the man’s extracurricular activities through social media posts. (He claimed in one of the posts that he had crashed during a race and injured his ribs. At the same time, he told a bold-faced lie to an investigator stating that he hurt himself at home after falling and injuring his knee.)

The man pleaded guilty to two counts of third-degree theft and a gross misdemeanor. We was sentenced to jail for 364 days, but had all but 15 days suspended on the condition that he obey the law for two years. (If they really wanted to hit him where it hurts, they should have taken away his BMX bike.) The article also states that his 15 days will be spent at home with electronic monitoring and he already paid back the undeserved benefits.

This man was extremely bold in his attempt to get away with workers’ compensation fraud, but a tip from someone that was aware of the situation exposed his scheme. It just goes to show how important it is to report fraudulent activity as soon as it is noticed. (Just remember, when fraudsters steal from government benefit programs, they are also stealing from you – the honest American taxpayer.)

Source: Today’s ”Fraud of the Day” is based on an article entitled ”Ex-Kent BMX Bike Racer Pleads Guilty to Defrauding State in Disability Scam” published by The Kent Reporter on April 17, 2015.

A Port Orchard man, who lived in Kent when he was caught on video racing BMX bikes while claiming he was too injured to work, pleaded guilty on Thursday to stealing more than $14,000 in disability benefits.

Tony T. Perry Sr., 52, pleaded guilty to two counts of third-degree theft, a gross misdemeanor, in Thurston County Superior Court, according to a state Department of Labor & Industries (L&I) media release.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.