Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 1 of 11 FILED UNITED STATES DISTRICT COURT DENVER, COLORADO 3:47 pm, Mar 11, 2016 JEFFREY P. COLWELL, CLERK IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Criminal Case No. 16-cr-00102-GPG UNITED STATES OF AMERICA, v. Plaintiff, 1. CLAUDIA DIANE RADDATZ, Defendant. INDICTMENT 18 U.S.C. 1343 Wire Fraud 18 U.S.C. 1920 False Statement or Fraud to Obtain Federal Employees Compensation The Grand Jury charges : COUNTS ONE THROUGH SEVENTEEN Wire Fraud 18 U.S.C. 1343 A. INTRODUCTION 1. At all times material to this indictment, the Office of Workers' Compensation Programs ( OWCP ) was an agency of the United States Department of Labor that administered the benefits program under the Federal Employees Compensation Act ("FECA").
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 2 of 11 2. At all times material to this indictment, FECA authorized wage loss compensation for injured federal employees, including employees of the United States Postal Service, during the time those federal employees were unable to work (or were able to work but only at a reduced level) because of injury sustained while a federal employee. The amount of such compensation depended on a number of factors evaluated by OWCP, including but not limited to, the extent of the federal employee's injury, the extent of the federal employee's ability to work, and the federal employee s pay at the time of injury. OWCP has sole authority to determine if a claimant was entitled to benefits provided by FECA. OWCP also authorizes payment of medical expenses associated with the claimed injury. 3. At all times material to this indictment, FECA required injured federal employees receiving wage loss compensation to periodically undergo medical examinations to determine whether they are still disabled within the meaning of the law and, thus, continue to be entitled to said compensation. OWCP evaluates the information received from claimants, attending physicians, independent medical personnel and the employer to ascertain the claimant's continuing eligibility for benefits. Any omission or misrepresentation by the claimant could result in the receipt of benefits to which the claimant might not otherwise be entitled. 4. At all times material to this indictment, the U.S. Department of Labor required the submission of a Form CA-2, Notice of Occupational Disease and Claim for Compensation, the initial injury report regarding the alleged injury. The Department of 2
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 3 of 11 Labor also required periodic reports from disabled employees, known as a Form CA-7, Claim for Compensation On Account of Traumatic Injury or Occupational Disease. As part of the claims process, other Department of Labor forms are also used. 5. Each Form CA-7 required an employee receiving FECA benefits to reveal whether he is only partially disabled and to reveal why he did not work during the payment period if he is less than totally disabled. Each Form CA-7 contained the warning, "Any person who knowingly makes any false statement, misrepresentation, concealment of fact or any other act of fraud to obtain compensation as provided by the FECA or who knowingly accepts compensation to which that person is not entitled is subject to civil or administrative remedies as well as felony prosecution and may, under appropriate criminal provisions, be punished by a fine or imprisonment or both." 6. CLAUDIA DIANE RADDATZ began working for the United States Postal Service on July 28, 1984 and remained a postal employee at all times relevant to this indictment until she medically retired from the United States Postal Service on April 4, 2015. 7. On October 3, 2007, CLAUDIA DIANE RADDATZ filed a FECA claim with the United States Department of Labor, Office of Workers Compensation Programs (OWCP), alleging injury to her right shoulder. The OWCP accepted the claim and identified the claim as claim number 122047171. CLAUDIA DIANE RADDATZ underwent right rotator cuff repair surgery on December 21, 2007; right shoulder debridement, arthroscopy, and decompression surgery on July 10, 2012; and right 3
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 4 of 11 shoulder arthroscopy, decompression, and rotator cuff reconstruction surgery on January 24, 2013. 8. CLAUDIA DIANE RADDATZ performed part time and full time light duty work between early 2008 and January 26, 2014, at which time she stopped working for the United States Postal Service. Based on medical information doctors provided to OWCP, OWCP considered CLAUDIA DIANE RADDATZ to be temporarily and totally disabled during the compensation period of February 9, 2014 April 4, 2015 and issued 17 wage-loss compensation payments totaling $41,813.79 (gross)/ $36,759.69 (net) to CLAUDIA DIANE RADDATZ. B. THE SCHEME 9. Beginning on or about March 5, 2014, and continuing through on or about April 4, 2015, in the District of Colorado and elsewhere, defendant CLAUDIA DIANE RADDATZ did devise and intend to devise a scheme or artifice to defraud and a scheme for obtaining money by means of false and fraudulent pretenses and representations made in connection with claims for compensation for her work related disability, the defendant knowing full well that these pretenses and representations were false and fraudulent. 10. It was part of the scheme that defendant CLAUDIA DIANE RADDATZ submitted or caused to be submitted claims to the Department of Labor, using official Department of Labor forms and other reports, for compensation benefits as the result of an alleged injury which occurred on or about October 3, 2007. The forms and other reports omitted 4
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 5 of 11 material facts regarding defendant's actual physical condition by failing to advise the Department of Labor that defendant was engaged in certain activities, as more fully described below in paragraph 15. 11. By letter dated February 25, 2013, OWCP notified CLAUDIA DIANE RADDATZ that she would be paid compensation benefits under conditions set forth in the letter. The letter specifically stated: If your condition improves such that you are able to engage in any type of work activity, you are expected to report this improvement to your physician and to OWCP. OWCP enclosed an acknowledgment form with the letter, stating I understand that willful failure on my part to comply with these conditions can result in termination or forfeiture of benefits and liability for resulting overpayments. I am also aware that any falsification or willful omission may result in criminal prosecution. It was further part of the scheme that CLAUDIA DIANE RADDATZ signed this acknowledgement on February 28, 2013, and returned it to OWCP. 12. It was further part of the scheme that defendant CLAUDIA DIANE RADDATZ made false and misleading statements and omitted material facts regarding her physical condition while undergoing medical examinations by physicians acting at the direction of OWCP. Those physicians were Dr. C. R., M.D. (who was the physician who primarily treated the defendant) and Dr. T. M., M.D. (who saw the defendant at OWCP s request for a second opinion). 13. It was further part of the scheme that defendant CLAUDIA DIANE RADDATZ, through her misrepresentations and omissions of material facts, caused Dr. R. and Dr. 5
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 6 of 11 M. to submit documents and Department of Labor forms on her behalf to OWCP which misrepresented her physical abilities and work restrictions. 14. It was further part of the scheme that defendant CLAUDIA DIANE RADDATZ rejected multiple attempts by the Postal Service to accommodate her alleged disabilities. On January 29, 2014 the Postal Service offered defendant CLAUDIA DIANE RADDATZ a modified assignment (limited duty job offer) that consisted of working three hours a day five days a week and involved duties such as putting mail in boxes, processing passports and performing window clerk duties. The physical requirements of the offered modified assignment consisted of lifting up to five pounds, walking, sitting and standing intermittently and performing fine manipulation and/ or simple grasping for up to one hour. Defendant CLAUDIA DIANE RADDATZ officially declined the job offer from the Postal Service on February 11, 2014 writing mgmt.. is trying to modify Dr. Restrictions violates Dr. Restrictions made mgmt.. aware of. On April 1, 2014 the Postal Service offered defendant CLAUDIA DIANE RADDATZ a revised modified job offer to work the clerk window, sort mail and assist with passports. This job offer was formulated after reviewing medical restrictions from Dr. C. R. On April 2, 2014, defendant CLAUDIA DIANE RADDATZ declined the new job offer, writing violate restrictions mgmt.. no good for my job restrictions. 15. It was further part of the scheme that defendant CLAUDIA DIANE RADDATZ sought and received benefits for total disability, when defendant was actively participating in physical activities, including but not limited to, vigorous physical exercise 6
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 7 of 11 at Gold s gym including treadmill machine activity, rowing machine activity, stationary bicycle riding, use of cable machines for weightlifting, and use of rotary torso twist machines. C. EXECUTION OF THE SCHEME On or about the dates alleged below, in the District of Colorado and elsewhere, Defendant CLAUDA DIANE RADDATZ, having knowingly and intentionally devised a scheme to defraud and to obtain money by means of false and fraudulent pretenses, representations or promises, and for the purpose of carrying out the scheme did knowingly cause interstate wire transmissions, in that CLAUDA DIANE RADDATZ received electronic financial transactions from OWCP in the amounts indicated below: Count Payment Date Period Covered Gross Net Payment Payment ONE 3/21/14 2/9/14 2/21/14 $618.84 $618.84 TWO 4/4/14 2/22/14 3/7/14 $692.80 $561.48 THREE 5/2/14 3/22/14 4/18/14 $1,745.00 $1,570 FOUR 5/2/14 3/8/14 3/21/14 $698.00 $566.68 FIVE 6/6/14 2/9/14 4/18/14 $3,051.44 $2,404.22 SIX 6/6/14 4/19/14 5/31/14 $4,287.71 $3,884.37 SEVEN 6/28/14 6/1/14 6/28/14 $2,792.00 $2,379.36 EIGHT 7/26/14 6/29/14 7/26/14 $2,792.00 $2,379.36 NINE 8/23/14 7/27/14 8/23/14 $2,792.00 $2,379.36 7
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 8 of 11 TEN 9/20/14 8/24/14 9/20/14 $2,792.00 $2,379.36 ELEVEN 10/18/14 9/21/14 10/18/14 $2,792.00 $2,469.76 TWELVE 11/15/14 10/19/14 11/15/14 $2,792.00 $2,529.36 THIRTEEN 12/13/14 11/16/14 12/13/14 $2,792.00 $2,529.36 FOURTEEN 1/10/15 12/14/14 1/10/15 $2,792.00 $2,529.36 FIFTEEN 2/7/15 1/11/15 2/7/15 $2,792.00 $2,522.94 SIXTEEN 3/7/15 2/8/15 3/7/15 $2,792.00 $2,524.94 SEVENTEEN 4/4/15 3/8/15 4/4/15 $2,800.00 $2,530.94 All in violation of Title 18, United States Code, Section 1343. COUNT EIGHTEEN False Statement or Fraud to Obtain Federal Employees Compensation 18 U.S.C. ' 1920 Beginning in or about March 4, 2014, and continuing through at least February 4, 2015, defendant CLAUDIA DIANE RADDATZ did knowingly and willfully falsify, conceal and cover up material facts for the purpose of obtaining monies and benefits under the FECA, to wit, CLAUDIA DIANE RADDATZ did misrepresent to her treating physician, Dr. C. R., M.D., the extent of her physical limitations and did conceal from her physician the full range of her physical activities/capabilities, which misrepresentations caused her physician to submit reports which materially misrepresented the defendant's ability to work; 8
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 9 of 11 All in violation of Title 18, United States Code, Section 1920. COUNT NINETEEN False Statement or Fraud to Obtain Federal Employees Compensation 18 U.S.C. ' 1920 Beginning on or about June 25, 2014, and continuing through at least June 27, 2014, defendant CLAUDIA DIANE RADDATZ did knowingly and willfully falsify, conceal and cover up material facts for the purpose of obtaining monies and benefits under the FECA, to wit, CLAUDIA DIANE RADDATZ did misrepresent to her treating physician, Dr. T. M., M.D., the extent of her physical limitations and did conceal from her physician the full range of her physical activities/capabilities, which misrepresentations caused her physician to submit reports which materially misrepresented the defendant's ability to work. All in violation of Title 18, United States Code, Section 1920. FORFEITURE NOTICE 1. The allegations contained in Counts One through Seventeen of this Indictment are hereby re-alleged and incorporated by reference for the purpose of alleging forfeiture pursuant to the provisions of Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461. 2. Upon conviction of the violations alleged in Counts One through Seventeen of this Indictment involving Wire fraud, Title 18, United States Code, Section 1343, defendant CLAUDIA DIANE RADDATZ shall forfeit to the United States, pursuant 9
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 10 of 11 to Title 18, United States Code, Section 981(a)(1)(C), and Title 28, United States Code, Section 2461(c) any and all of the defendants right, title and interest in all property constituting and derived from any proceeds the defendants obtained directly and indirectly as a result of such offense, including, but not limited to: A money judgment in the amount of proceeds obtained as a result of the offenses. 3. If any of the property described in the paragraphs above, as a result of any act or omission of the defendant: a) cannot be located upon the exercise of due diligence; b) has been transferred or sold to, or deposited with, a third party; c) has been placed beyond the jurisdiction of the Court; d) has been substantially diminished in value; or e) has been commingled with other property which cannot be subdivided without difficulty; it is the intent of the United States, pursuant to Title 21, United States Code, Section 853(p), incorporated by Title 28, United States Code, Section 2461(c), to seek forfeiture of any other property of said defendants up to the value of the forfeitable property. 10
Case 1:16-cr-00102-GPG Document 1 Filed 03/11/16 USDC Colorado Page 11 of 11 TRUE BILL: Ink signature on file in Clerk s Office FOREPERSON JOHN F. WALSH United States Attorney By: s/ Pete Hautzinger PETE HAUTZINGER Assistant United States Attorney 205 N. 4 th Street, Suite 400 Grand Junction, Colorado 81501 Telephone 970-241-3843 Fax: (970) 248-3630 E-mail: peter.hautzinger@usdoj.gov 11
Case 1:16-cr-00102-GPG Document 1-1 Filed 03/11/16 USDC Colorado Page 1 of 2 DEFENDANT Claudia Diane Raddatz YOB: 1960 ADDRESS: Montrose, Colorado COMPLAINT FILED? YES X NO IF YES, PROVIDE MAGISTRATE CASE NUMBER: IF NO, PROCEED TO OFFENSE SECTION HAS DEFENDANT BEEN ARRESTED ON COMPLAINT? YES X NO OFFENSE: Counts One through Seventeen: 18 U.S.C. 1343, Fraud by wire Counts Eighteen and Nineteen: 18 U.S.C. 1920, False statement or fraud to obtain Federal employees compensation LOCATION OF OFFENSE: Montrose County, Colorado PENALTY: Counts One through Seventeen: NMT 20 years imprisonment; a $250,000 fine, or both; NMT 3 years supervised release; restitution; $100 special assessment fee Counts Eighteen and Nineteen: NMT 5 years imprisonment; NMT $250,000 fine, or both; NMT 3 years supervised release; restitution; $100 special assessment fee AGENT: AUTHORIZED BY: Special Agent Wayne Leaders Office of the Inspector General, United States Postal Service Pete Hautzinger Assistant United States Attorney ESTIMATED TIME OF TRIAL: X five days or less over five days other
Case 1:16-cr-00102-GPG Document 1-1 Filed 03/11/16 USDC Colorado Page 2 of 2 THE GOVERNMENT: will seek detention in this case X will not seek detention in this case The statutory presumption of detention is not applicable to this defendant. OCDEF CASE: Yes X No