Afton businessman sentenced to 60 days for workers' comp, welfare fraud
NORWICH – An Afton business owner who was convicted of collecting $60,000 in workers’ compensation benefits he was not entitled to over a 13 year time span was sentenced to 60 days in jail Monday.
Chenango County Court Judge W. Howard Sullivan also ordered 60-year-old Edward Panus, owner of an Afton fish hatchery, to repay $4,500 in restitution to the New York State Insurance Fund.
“Mr. Panus was convicted of ripping off the taxpayers of Chenango County in two separate cases; one for fraudulently receiving workers’ comp by providing false information and two, receiving welfare benefits he was not entitled too,” said District Attorney Joseph McBride. “The word needs to get out, if you rip off the taxpayers of Chenango County you will go to jail.”
Panus’ arrest came after a six-month investigation by the New York State Insurance Frauds Bureau and the New York State Police in Sidney.
Panus was originally arrested by police and charged with 14 felonies involving fraud, with each count carrying a possible four year prison sentence.
McBride said Panus submitted false information to the New York State Insurance Fund so he could continue receiving compensation benefits while opening his own business called Ponderosa Fish Farms, in 1996.
Panus started collecting the benefits after suffering a back injury while moving sheet rock in 1988, claiming the injury made it impossible for him to generate a suitable income.
In a two-day trial June 23, Panus was found guilty of each of the six felony fraud charges prosecutors sought against him. The jury deliberated for 48 minutes before returning its verdicts.
During the trial, McBride claimed dated financial documents showed Panus reported a $10,000 a month income to bank officials while continuing to collect about $100 a week from workers’ compensation.
On July 26, Panus also pleaded guilty to fourth degree welfare fraud, an E Class felony. In that case, Panus admitted to falsifying his food stamps application between October 2008 and May 2009 by failing to mention he had a $10,000 savings account at Sidney Federal Credit Union. McBride said the defendant collected $1,280 worth of food stamps during that time.
McBride said the 60 day sentence and ordered restitution would satisfy the sentencing for both cases.
“Citizens who are deserving of public assistance certainly are eligible to receive it, but when people choose to deceive or hide the accuracy of their finances in an effort to intentionally defraud the public, they should and will be punished. It’s stealing and it’s all the hard working taxpayers of the county that are the true victims of these crimes,” said Assistant District Attorney Michael D. Ferrarese at Panus’ July court plea.
Chenango County Court Judge W. Howard Sullivan also ordered 60-year-old Edward Panus, owner of an Afton fish hatchery, to repay $4,500 in restitution to the New York State Insurance Fund.
“Mr. Panus was convicted of ripping off the taxpayers of Chenango County in two separate cases; one for fraudulently receiving workers’ comp by providing false information and two, receiving welfare benefits he was not entitled too,” said District Attorney Joseph McBride. “The word needs to get out, if you rip off the taxpayers of Chenango County you will go to jail.”
Panus’ arrest came after a six-month investigation by the New York State Insurance Frauds Bureau and the New York State Police in Sidney.
Panus was originally arrested by police and charged with 14 felonies involving fraud, with each count carrying a possible four year prison sentence.
McBride said Panus submitted false information to the New York State Insurance Fund so he could continue receiving compensation benefits while opening his own business called Ponderosa Fish Farms, in 1996.
Panus started collecting the benefits after suffering a back injury while moving sheet rock in 1988, claiming the injury made it impossible for him to generate a suitable income.
In a two-day trial June 23, Panus was found guilty of each of the six felony fraud charges prosecutors sought against him. The jury deliberated for 48 minutes before returning its verdicts.
During the trial, McBride claimed dated financial documents showed Panus reported a $10,000 a month income to bank officials while continuing to collect about $100 a week from workers’ compensation.
On July 26, Panus also pleaded guilty to fourth degree welfare fraud, an E Class felony. In that case, Panus admitted to falsifying his food stamps application between October 2008 and May 2009 by failing to mention he had a $10,000 savings account at Sidney Federal Credit Union. McBride said the defendant collected $1,280 worth of food stamps during that time.
McBride said the 60 day sentence and ordered restitution would satisfy the sentencing for both cases.
“Citizens who are deserving of public assistance certainly are eligible to receive it, but when people choose to deceive or hide the accuracy of their finances in an effort to intentionally defraud the public, they should and will be punished. It’s stealing and it’s all the hard working taxpayers of the county that are the true victims of these crimes,” said Assistant District Attorney Michael D. Ferrarese at Panus’ July court plea.
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