Disabled correctional officer pleads guilty to fraud, larceny

Paul Mahan, 42, pleaded guilty to workers comp fraud and larceny

By C1 Staff

BOSTON — A correctional officer receiving worker’s compensation while he ran car dealerships has been ordered to pay over $305,000 in restitution and complete five years of probation.

Business Insurance reports that Paul Mahan, 42, pleaded guilty to workers comp fraud and larceny.

He began working as a correctional officer with the Suffolk County Sheriff’s Department in 1997 and suffered a job-related knee injury in 2000. After several independent medical evaluations over the course of several years, he was determined to be permanently and totally disabled in 2006.

The worker’s comp, assault pay and retirement benefits totaled more than 100 percent of Mahan’s salary as a correctional officer.

The sheriff’s office began periodic surveillance of Mahan in 2006 and found that he was regularly working at a car dealership registered under the name of his wife.

Further investigation found that Mahan was being overpaid $203,000 in worker’s comp benefits, $125,000 in assault pay, $49,000 in retirement benefits and $46,000 in Social Security disability benefits.

Mahan’s business partner, Kelly Walsh, also pleaded guilty to larceny by false pretenses in 2014. He was ordered to pay $22,320 in restitution.

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