Actively employed Massachusetts woman pleads guilty to stealing workers comp and disability benefits

BOSTON – A Massachusetts woman has pleaded guilty in federal court in Boston to fraudulently receiving federal workers’ compensation benefits and disability benefits from the Social Security Administration.

According to the Massachusetts Department of Justice, 66-year-old Karen Nolan pleaded guilty to two counts of theft of public funds and two counts of making false statements. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 7, 2023. Nolan was indicted by a federal grand jury in August 2021.

From approximately November 2017 through August 2021, Nolan repeatedly stole federal workers’ compensation benefits, as well as Social Security disability benefits from approximately July 2019 through August 2021. In April 2019, Nolan falsely reported to the SSA that she had not worked since 2017 due to a medical disability, but was actively employed at a dermatology practice at the time. Nolan also made similar false statements to the Department of Labor, Office of Workers’ Compensation Programs in May 2021.

The charges of theft of public funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making a false statement each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Anthony DiPaolo, Chief of Investigations, Insurance Fraud Bureau of Massachusetts, made the announcement. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit is prosecuting the case.