United States Department of Labor

Employees’ Compensation Appeals Board

__________________________________________

R.M., Appellant

and

U.S. POSTAL SERVICE, DALLAS BULK MAIL 

CENTER, Dallas, TX, Employer

__________________________________________

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Docket No. 17-0141

Issued: March 28, 2018

Appearances: Case Submitted on the Record

Appellant, pro se 

Office of Solicitor, for the Director

DECISION AND ORDER

Before:

PATRICIA H. FITZGERALD, Deputy Chief Judge

ALEC J. KOROMILAS, Alternate Judge

VALERIE D. EVANS-HARRELL, Alternate Judge

JURISDICTION

On October 27, 2016 appellant filed a timely appeal from a May 19, 2016 merit decision 

of the Office of Workers’ Compensation Programs (OWCP). Pursuant to the Federal 

Employees’ Compensation Act1(FECA) and 20 C.F.R. §§ 501.2(c) and 501.3, the Board has 

jurisdiction over merits of this case. 

ISSUES

The issues are: (1) whether OWCP properly terminated appellant’s compensation,

effective March 8, 2016, because she forfeited her entitlement to compensation beginning 

March 8, 2016 pursuant to 5 U.S.C. § 8148(a); (2) whether appellant received an overpayment of 

compensation in the amount of $2,615.90 from March 8 to April 2, 2016 based on the forfeiture; 

(3) whether OWCP properly found appellant at fault in the creation of the overpayment, thereby 

precluding waiver of recovery; and (4) whether OWCP properly determined that recovery of the 

overpayment should be made in full. 

 

1 5 U.S.C. § 8101 et seq.
2

FACTUAL HISTORY

On April 3, 2008 appellant, then a 51-year-old distribution clerk, filed an occupational 

disease claim (Form CA-2) alleging that her bilateral plantar fasciitis was caused or aggravated 

by factors of her federal employment. OWCP initially accepted the claim for bilateral plantar 

fibromatosis. It subsequently expanded her claim to include acceptance of inflamed bilateral 

seborrheic keratosis. Appellant stopped work on January 7, 2010. OWCP paid her wage-loss 

compensation on the supplemental rolls as of January 7, 2010, and on the periodic rolls as of 

March 14, 2011. Appellant retired from the employing establishment in 2015.2

The record contains an order signed on March 8, 2016 by a judge for the U.S. District 

Court for the Northern District of Texas accepting appellant’s guilty plea under 18 U.S.C. § 1920 

to one count of False Statements to Obtain Federal Employees’ Compensation. The record also 

contains copies of appellant’s probation and criminal monetary penalties along with a schedule 

of payments. Restitution was not ordered.

In an April 14, 2016 letter, OWCP related the circumstances of the fraud scheme. It 

indicated that appellant was being paid by her medical provider to falsify and back date medical 

documentation stating that she had attended ghost counseling sessions. In return, appellant’s 

medical provider was billing OWCP’s FECA division for the ghost counseling sessions from 

January 2009 to September 2014.

In a compensation termination worksheet, OWCP calculated that for the period March 8 

to April 2, 2016, appellant received $2,615.90 in FECA compensation benefits.

By decision dated April 13, 2016, OWCP determined that appellant forfeited her

entitlement to compensation beginning March 8, 2016. It noted that on March 8, 2016 she had 

pled guilty to 18 U.S.C. § 1920, False Statements to Obtain Federal Employees’ Compensation. 

OWCP indicated that, as a result of her conviction, and in accordance with 5 U.S.C. § 8148(a) 

and 20 C.F.R. § 10.17, appellant was not entitled to receive further benefits under FECA. It 

noted that it would pay for any authorized medical treatment appellant received prior to the date 

of the conviction, but no further medical treatment would be paid beyond that date. 

Compensation benefits, including schedule award benefits, were terminated March 8, 2016, the

date of appellant’s conviction. 

On April 14, 2016 OWCP advised appellant of its preliminary determination that she had 

received an overpayment of compensation in the amount of $2,615.90 for the period March 8 to 

April 2, 2016 because she received compensation for this period after she pled guilty under 

18 U.S.C. § 1920 to one count of False Statements to Obtain Federal Employees’ Compensation. 

OWCP also made a preliminary determination that appellant was at fault in the creation of the 

overpayment because she accepted a payment she knew or reasonably should have known was 

incorrect, thereby precluding waiver of recovery of the overpayment. It provided appellant 30 

days to submit evidence and argument challenging the proposed actions. Appellant did not 

respond within the allotted period. 

 

2 On February 1, 2016 OWCP noted that appellant indicated that she had earnings from self-employment in her 

EN1032 form dated November 22, 2015 and had requested further information to clarify her employment/earnings. 

Appellant did not respond to OWCP’s letter. 
3

By decision dated May 19, 2016, OWCP finalized the overpayment of compensation in 

the amount of $2,615.90 from March 8 to April 2, 2016 based on the forfeiture of her

compensation under 18 U.S.C. § 1920. It also found that she was at fault in creating the 

$2,615.90 overpayment because she accepted a payment she knew or reasonably should have 

known was incorrect, thereby precluding waiver of recovery. Appellant was instructed to pay 

the full amount of $2,615.90 within 30 days or to contact OWCP within 30 days so that 

appropriate arrangements for recovery (such as installment payments) could be made.

LEGAL PRECEDENT -- ISSUE 1

Public Law No. 103-333, enacted on September 30, 1994, amended FECA by adding 5 

U.S.C. § 8148, which provides for the termination of benefits payable to beneficiaries who have 

been convicted of defrauding the program. Section 8148(a) specifically states that any individual 

convicted of a violation of 18 U.S.C. § 1920 or any other federal or state criminal statute relating 

to fraud in the application for or receipt of any benefit under FECA, shall forfeit, as of the date of 

such conviction, any entitlement to any benefit to which such individual would otherwise be 

entitled under FECA for any injury occurring on or before the date of such conviction. Such 

forfeiture shall be in addition to any action the Secretary may take under section 81063

(forfeiture) or section 81294(recovery of overpayments) of FECA.5

Section 10.17 of OWCP’s implementing regulations provides that when a claimant pleads 

guilty to federal or state criminal charges of fraud in connection with receipt of Federal 

Government benefits, the claimant’s entitlement to further compensation benefits will terminate 

effective the date the guilty plea is accepted. Termination of entitlement under this section is not 

affected by any subsequent change in or recurrence of the beneficiary’s medical condition.6

OWCP’s procedures state that in support of termination or suspension of compensation 

the record must contain copies of the indictment or information and the plea agreement, if any, or 

the document containing the guilty verdict. Further, this evidence must establish that the 

individual was convicted and the conviction is related to the claim for or receipt of compensation 

benefits under FECA.7 The termination is effective on the date of the verdict or on the date the 

guilty plea is accepted and guilt adjudicated.8 Because of the criminal basis for the termination, 

no pretermination notice is required before a final decision is issued.9

 

3 5 U.S.C. § 8106.

4

Id. at § 8129.

5

Id. at § 8148; see F.C., 59 ECAB 666 (2007). 

6 20 C.F.R. § 10.17.

7 Federal (FECA) Procedure Manual, Part 2 -- Claims, Disallowances, Chapter 2.1400.17c(2) (February 2013).

8

Id. at Chapter 2.1400.17(d) (February 2013).

9

Id. at Chapter 2.1400.4(a)(6) (February 2013).
4

ANALYSIS -- ISSUE 1

The Board finds that OWCP properly terminated appellant’s compensation benefits 

effective March 8, 2016 because she was convicted in federal court under a statute relating to 

fraud in the application for or receipt of compensation benefits under FECA. On March 8, 2016 

a judge for the U.S. District Court for the Northern District of Texas accepted appellant’s guilty 

plea to one count of violating 18 U.S.C. § 1920 (False Statements to Obtain Federal Employees’

Compensation) when she knowingly and intentionally obtained FECA benefit payments on a 

fraudulent basis. Under section 8148(a) of FECA, a claimant who is convicted of fraud in 

obtaining compensation benefits under 18 U.S.C. § 1920 or any other federal or state criminal 

statute relating to fraud in the application for or receipt of any benefit under FECA is 

permanently barred from receiving any compensation under FECA.10 The record contains copies 

of the guilty verdict. OWCP’s April 14, 2016 letter further detailed the circumstances under 

which appellant committed fraud under FECA. The Board finds that this evidence establishes 

that appellant was convicted of fraud in obtaining FECA compensation benefits.11 OWCP 

procedures provide that the termination is effective on the date the guilty plea is accepted and 

guilt adjudicated.12 The Board finds that OWCP properly terminated appellant’s compensation 

benefits that day, March 8, 2016.13

LEGAL PRECEDENT -- ISSUE 2 

Section 8148 of FECA states that any individual convicted of a violation of 18 U.S.C. 

§ 1920 or any other federal or state criminal statute relating to fraud in the application for or 

receipt of any benefit under FECA, shall forfeit, as of the date of such conviction, any 

entitlement to any benefit such individual would otherwise be entitled to under FECA for any 

injury occurring on or before the date of such conviction. Such forfeiture shall be in addition to 

any action the Secretary may take under section 8106 (forfeiture) or section 8129 (recovery of 

overpayments) of FECA.14

ANALYSIS -- ISSUE 2

On March 8, 2016 a judge accepted appellant’s guilty plea to one count of violating 

18 U.S.C. § 1920, a federal criminal statute, when she knowingly and intentionally fraudulently 

obtained FECA benefit payments. In an April 14, 2016 letter, OWCP indicated that appellant 

was being paid by her medical provider to back date medical documentation stating that she had 

attended ghost counseling sessions. Appellant’s medical provider then billed FECA for the ghost 

counseling sessions from January 2009 to September 2014. As stated, under section 8148(a) of 

FECA any individual convicted of 18 U.S.C. § 1920 or any other federal or state criminal statute 

relating to fraud in the application for or receipt of benefits under FECA will have his or her 

 

10 5 U.S.C. § 8148(a); see D.B., Docket No. 16-0988 (issued September 6, 2016).

11 See supra note 6.

12 See supra note 7.

13 See John L. Hoss, Jr., 54 ECAB 239 (2002); Bob R. Gilley, 51 ECAB 377 (2000).

14 See supra note 4.
5

compensation forfeited, as of the date of such conviction. Because appellant pled guilty to 

violating a federal criminal statue, she forfeited any future compensation as of March 8, 2016, 

the date her guilty plea was accepted and guilt adjudicated.

The record reveals that appellant received wage-loss compensation benefits from 

March 8 to April 2, 2016 after her conviction on March 8, 2016 for fraud under 18 U.S.C. 

§ 1920. OWCP determined that during the stated period she received compensation in the 

amount of $2,615.90.15 The record contains documentation of OWCP’s calculations and there is 

no contrary evidence. OWCP explained the basis of the overpayment and appellant does not 

dispute that she received compensation payments from March 8 to April 2, 2016 following her

fraud conviction. The Board finds that she received an overpayment of compensation in the 

amount of $2,615.90.

16

LEGAL PRECEDENT -- ISSUE 3

Section 8129(a) of FECA provides that, when an overpayment of compensation has been 

made because of an error of fact or law, adjustment shall be made by decreasing later payments 

to which an individual is entitled. The only exception to this requirement is when an incorrect 

payment has been made to an individual who is without fault and when adjustment or recovery 

would defeat the purpose of FECA or be against equity and good conscience.17 No waiver of 

payment is possible if appellant is with fault in helping to create the overpayment.18

Section 10.433(a) of OWCP’s implementing regulations provides that an individual is 

with fault in the creation of an overpayment who: (1) made an incorrect statement as to a 

material fact which the individual knew or should have known to be incorrect; (2) failed to 

furnish information which the individual knew or should have known to be material; or (3) with 

respect to the overpaid individual only, accepted a payment which the individual knew or should 

have been expected to know was incorrect.19

ANALYSIS -- ISSUE 3

Upon its application of the third standard to determine if appellant was at fault in the 

creation of the overpayment, OWCP found that appellant had knowledge that the payment was 

incorrect. The Board finds that the record establishes that she knew or should have known that 

she accepted incorrect compensation payments by filing false claims for FECA benefits. 

 

15 See Alan L. Trindle, Sr., 53 ECAB 487 (2002) where the Board found that gross compensation represented the 

amount of overpayment from forfeiture of compensation. The gross compensation in this case was $3,140.43 for the 

compensation period March 8 to April 2, 2016. OWCP utilized the net compensation to represent the overpayment 

amount. 

16 See D.B., Docket No. 16-0988 (issued September 6, 2016).

17 5 U.S.C. § 8129(b).

18 Robert W. O’Brien, 36 ECAB 541, 547 (1985).

19 20 C.F.R. § 10.433(a); Kenneth E. Rush, 51 ECAB 116, 118 (1999).
6

When appellant pled guilty to violating 18 U.S.C. § 1920, she admitted that she 

knowingly and intentionally received FECA compensation benefits which she knew she was not 

entitled. The March 8, 2016 plea of guilt alone is sufficient to establish that appellant knew that 

she had accepted incorrect FECA payments. Appellant knew or should have known that her

continued receipt of FECA benefits after her March 8, 2016 conviction was incorrect. Even if 

the overpayment resulted from negligence on the part of OWCP in continuing to issue appellant 

wage-loss checks after she was convicted of fraudulently obtaining FECA benefits, this did not 

excuse her from accepting continued payments which she knew or should have known to be 

incorrect.20 As appellant accepted compensation benefits from OWCP, which covered the period 

March 8 to April 2, 2016, the Board finds that she was at fault in the creation of the $2,615.90

overpayment and is not entitled to waiver of recovery of the overpayment.

21

LEGAL PRECEDENT -- ISSUE 4

The Board’s jurisdiction over recovery of an overpayment is limited to reviewing those 

cases where OWCP seeks recovery from continuing compensation under FECA. Section 

10.441(b) of the regulations provide: 

“When an overpayment has been made to an individual who is not entitled to 

further payments, the individual shall refund to OWCP the amount of the 

overpayment as soon as the error is discovered or his or her attention is called to 

same. The overpayment is subject to the provisions of the Federal Claims 

Collection Act of 1966 (as amended) and may be reported to the Internal Revenue 

Service as income....”

22

ANALYSIS -- ISSUE 4

As appellant’s right to future compensation benefits was terminated under the forfeiture 

provision of section 8148(a), she is not entitled to continuing compensation benefits and the 

Board does not have jurisdiction over OWCP’s recovery of the overpayment.23 It is noted, 

however, that when a judgment in a criminal case orders restitution to be paid to the Department 

of Labor, procedures indicate that she should receive credit for this amount.24 Restitution, 

however, was not ordered to be paid in appellant’s criminal case.25 As noted, the Board does not 

have jurisdiction over OWCP’s recovery of the overpayment in the amount of $2,615.90 that was 

found in her case.26

 

20 Diana L. Booth, 52 ECAB 370 (2001).

21 See K.R., Docket No. 14-0434 (issued October 7, 2014).

22 20 C.F.R. § 10.441(b).

23 Robert Ringo, 53 ECAB 258, 266, n.20 (2001); Robert S. Luciano, 47 ECAB 793, 799 (1996).

24 Federal (FECA) Procedure Manual, Part 6 -- Debt Management, Debt Liquidation, Chapter 6.300.18 

(June 2009). See also Martin James Sullivan, 50 ECAB 158 (1998).

25 See J.C., Docket No. 13-726 (issued September 23, 2013). 

26 Robert Ringo, supra note 23. 
7

Accordingly, the Board does not have jurisdiction over this matter or the method of 

recovery of the overpayment.

CONCLUSION

The Board finds that OWCP properly terminated appellant’s compensation, effective 

March 8, 2016, because she forfeited her entitlement to compensation beginning March 8, 2016 

pursuant to 5 U.S.C. § 8148(a). The Board further finds that OWCP properly determined that 

appellant received an overpayment of compensation in the amount of $2,615.90 from March 8 to 

April 2, 2016 based on the forfeiture of compensation and properly; and that she was at fault in 

the creation of the $2,615.90 overpayment, thereby precluding waiver of recovery.

ORDER

IT IS HEREBY ORDERED THAT the May 19, 2016 decision of the Office of 

Workers’ Compensation Programs is affirmed.

Issued: March 28, 2018

Washington, DC

Patricia H. Fitzgerald, Deputy Chief Judge

Employees’ Compensation Appeals Board

Alec J. Koromilas, Alternate Judge

Employees’ Compensation Appeals Board

Valerie D. Evans-Harrell, Alternate Judge

Employees’ Compensation Appeals Board