Man convicted of work-comp fraud

Man convicted of work-comp fraud

HELENA (AP) — A Helena jury convicted a Ronan man Wednesday of two felony counts of theft involving $14,000 in workers’ compensation benefits.

Perry Joseph Penfield was employed at his parents’ business, Polson Paint and Glass, in April 2008 when he fell into a window well and injured his right knee, according to an affidavit filed by the Attorney General’s Office. 

A week later, Penfield began receiving $777.86 in biweekly temporary total disability benefits from the Montana State Fund.

Investigators from the Montana Department of Justice and Montana State Fund discovered that Penfield had established his own paint and siding company and was earning money while continuing to receive wage loss benefits.  

The Attorney General’s Office filed suit in Montana’s First Judicial District Court in Helena in June 2011.  The trial lasted two days and the 12-person jury returned a verdict after about an hour of deliberations, finding Penfield guilty of two counts of theft.

Judge Kathy Seeley, presiding over the trial, set sentencing for April 11.  

Penfield faces a possible maximum penalty of 10 years in prison and/or a $50,000 fine on each count of theft. Prosecutors plan to ask the judge to order Penfield to pay $14,000 in restitution to the Montana State Fund.

According to Montana Attorney General Tim Fox, “Montana’s business owners pay their insurance premiums expecting that every dollar will be used to help their injured employees get back on their feet. We’ll continue to keep a vigilant eye out for fraud in order to ensure that funds are available to help those who truly need it.”