Florida Woman Charged With Workers’ Compensation Fraud, Larceny

HARTFORD, Conn., Aug. 13 -- The Connecticut Division of Criminal Justice'sOffice of Chief State's Attorney issued the following news:

KATHLEEN WILLIAMS, age 66, of 1335 Fleming Avenue 52, Ormond Beach, Florida,was arrested today and charged with one count each of Workers' Compensation Fraud and Larceny in the First Degree.

According to the arrest warrant affidavit, in July of 1986, Williams' husband sustained a work-related injury and, as a result of that injury, began to receive permanent total disability workers' compensation benefits. From January of 2008 through August 2009, Liberty Mutual Insurance made several attempts to resolve the remainder of the claim with a lump sum settlement benefit payment to Williams' husband. All Settlement offers made by Liberty Mutual were rejected, according to the warrant.

The warrant states that in August 2009 Williams' husband became terminally ill. A short while later, a representative of Williams' husband contacted the insurance company and expressed an interest in settling the claim for a lump sum. The warrant indicates that at no time during the subsequent negotiations did the defendant, who had been given power of attorney for her husband on September 3, 2009, reveal to the insurance company the nature of her husband's illness.

The warrant states that as a result of the defendant's failure to disclose information about her husband's condition the insurance company agreed to a lump sum settlement in the amount of $420,000, which was based on the defendant's husband having a life expectancy of approximately eighteen years from the date of the settlement. In the agreement, which was signed by the defendant, both parties stated that they had not engaged in fraud. On Friday, November 27, 2009, the defendant's husband died.

Williams arrested by Inspectors from the Chief State's Attorney's Office and arraigned at Milford Superior Court, GA #22, where a $50,000 non-surety bond was set. Her next court date is scheduled for October 3, 2014. The charges against Williams are merely allegations and she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is being prosecuted by the Workers' Compensation Fraud Control Bureau in the Office of the Chief State's Attorney.

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