Workers’ Compensation Fraud Case
United States v. Sandra “Sandy” Cannon Throneburg
Issue
Whether Sandra “Sandy” Cannon Throneburg, a former USPS rural carrier, violated federal law and FECA requirements by concealing employment while receiving federal workers’ compensation benefits.
Rule
– Under 18 U.S.C. § 1001, it is a federal offense to knowingly and willfully make a materially false, fictitious, or fraudulent statement in any matter within the jurisdiction of the federal government. - The Federal Employees’ Compensation Act (FECA), 5 U.S.C. §§ 8101 et seq., requires beneficiaries to disclose employment, self-employment, business activities, and volunteer work when receiving disability compensation. - OWCP Form EN-1032 specifically requires full disclosure of any outside income or work activity. - Conviction under 18 U.S.C. § 1001 carries a maximum penalty of five years imprisonment.
Analysis
Facts of the Case
Throneburg was employed by the U.S. Postal Service as a rural carrier in Valdese, North Carolina, and sustained a work-related injury in September 2015. She began receiving FECA benefits in October 2015. Between 2016 and 2020, however, Throneburg worked for an accounting firm performing clerical duties, receiving earned income while continuing to collect federal disability payments.
Fraudulent Conduct
On September 24, 2020, Throneburg submitted OWCP Form EN-1032, falsely indicating that she had no outside employment or self-employment. Her misrepresentation allowed her to continue receiving disability benefits while concealing her work activity. Court documents show that during this period, she improperly received over $261,000 in compensation benefits, while OWCP also paid more than $278,000 in medical expenses on her behalf.
Oversight and Enforcement
The fraud was detected and investigated by the USPS Office of Inspector General. The reliance on claimant self-reporting highlights systemic vulnerabilities in OWCP oversight. The case demonstrates the government’s willingness to prosecute long-term fraud, even years after the misconduct occurred.
Policy Implications
The case underscores the financial impact of FECA fraud, with over half a million dollars in losses. It also highlights the need for stronger verification systems, such as cross-checking claimant data with IRS and Social Security records, to prevent fraudulent claims.
Conclusion
Sandra Cannon Throneburg’s guilty plea establishes clear liability under 18 U.S.C. § 1001 for making false statements to the federal government. Her conduct represents a violation of FECA’s disclosure requirements and constitutes workers’ compensation fraud. The offense carries a maximum penalty of five years imprisonment. The case reflects systemic weaknesses in OWCP oversight and the need for enhanced compliance measures to safeguard taxpayer funds.
