Internet-based investigation yields evidence of fraud, resulting in a dismissal with prejudice of the petitioner's claim and forfeiture of his rights to compensation.

The petitioner was employed as a mechanic by the respondent when, in February of 2004, he sustained a slip and fall on a concrete floor at the respondent's premises, resulting in injury to his neck and back. The petitioner received an approximate two-year course of authorized medical treatment, including surgery of the lumbar spine. He subsequently filed a claim for permanency benefits with the Division of Workers' Compensation. Although the respondent stipulated as to the compensability of the petitioner's claim, a trial ensued as to the nature and extent of the petitioner's permanent disability.

At trial, the petitioner testified that he experienced chronic and severe pain of the neck and back which limited his recreational activities and activities of daily life. On cross examination, the petitioner explained that he had a hobby of raising horses for harness racing and that he and his family were forced to move their farm to Maryland shortly after the accident because they could not afford to keep their horses in New Jersey. The petitioner testified that he was no longer able to ride horses, train horses or care for them as a result of the accident, and that he now simply supervised others in performing these tasks.

Following this testimony, the respondent served upon the petitioner documentation from the United States Trotting Association ("USTA") website indicating that the petitioner was the trainer of various race horses and had been the driver of those horses in many competitive races in the years following his injury, including one race just a week prior to his testimony at trial. Following proper foundational testimony and authentication, the court did allow the respondent to admit into evidence certain portions of the USTA documents.

At the conclusion of trial, the respondent moved for dismissal of the petitioner's claim pursuant to N.J.S.A. 34:15-57.4(c)(1) which provides:

If a person purposely or knowingly makes, when making a claim for benefits pursuant to N.J.S.A 34:15-1 et seq., a false or misleading statement, representation or submission concerning any fact which is material to that claim for the purpose of obtaining benefits, the Division may order the immediate termination or denial of benefits with respect to that claim and a forfeiture of all rights of compensation or payments sought with respect to the claim.

Based on the discrepancies between the petitioner's own testimony and the USTA documents, the Judge of Compensation concluded that the petitioner had purposely and knowingly made false statements that he could no longer drive horses and that he had done so "in order to enhance his prospective award of benefits." Accordingly, the Judge of Compensation dismissed the claim with prejudice, ordered the termination of benefits and forfeiture of rights to compensation with respect to the claim, and referred the matter to the Director of the Division of Workers' Compensation for a determination of whether law enforcement should be notified. An appeal ensued.

In affirming the Judge of Compensation's dismissal of this claim, the Appellate Division found that the record was replete with evidence to support the Judge of Compensation's finding that the petitioner purposely and knowingly made false statements. In quoting the Judge of Compensation, the Appellate Division concluded:

As to the seriousness of Petitioner's false testimony, [we] find that claiming under oath that he does not drive horses anymore, just one week after driving a horse in a harness race, is so flagrantly galling as to constitute a serious violation per se for the purposes of N.J.S.A. 34:15-57.4(c)(1).

Case Law Alert - 3rd Qtr 2012