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Saint Lawrence Seaway Development Corporation Employee Pleads Guilty to Worker's Compensation Fraud

On July 3, 2012, Thomas Schneller, a millwright/welder employed by the Saint Lawrence Seaway Development Corporation (SLSDC), pled guilty to fraud regarding federal worker’s compensation benefits in U.S. District Court, Northern District of New York.  Mr. Schneller claimed an on-the-job injury in February 2004, yet continued to work in his own private welding business (AKJ Marine - established about a week after his purported injury), while receiving federal worker’s compensation benefits.  Mr. Schneller failed to disclose his outside source of income on the annual Office of Worker’s Compensation Program certification forms and remained in the program to the present day.  As a result of his guilty plea, Mr. Schneller agreed to make restitution to the U.S. Department of Labor (DOL) in the amount of $84,987.  It is anticipated that the SLSDC will initiate removal action.


This case was worked jointly with the DOL-OIG.