William Szudera, Mail Fraud, Montana 2013

A 76-year-old Havre resident, William Szudera, has been sentenced to four years of probation for his role in a mail fraud scheme. In a federal court session in Great Falls on September 26, 2013, Chief U.S. District Judge Dana L. Christensen handed down the sentence.

According to court documents, Szudera collected workers compensation benefit payments based on his annual representations to the Department of Labor that he was not working and earned no income. However, it was discovered that he was operating a shooting supply business, making him ineligible for approximately $277,484 in benefits he received from 2001 through 2012.

The scheme began when Szudera was added to the Department of Labor’s permanent rolls in 1984 and started receiving workers compensation checks for his wage loss due to his injury. In 1992, the Department of Labor adjusted Szudera’s compensation after determining that he was able to earn a limited wage. Under that status, Szudera collected workers compensation payments based on the limited wage earning capacity of a cashier.

However, it was revealed that Szudera owned and operated a shooting supply business, B&G Shooting Supply, since at least 2000. His tax returns from 2002 to 2010 show that B&G Shooting had gross receipts ranging from approximately $500,000 to $750,000. The returns indicate a profit for every year with the exception of 2006.

Szudera filled out annual certifications stating that he was unemployed and did not receive any outside income, despite his involvement in the business. He was interviewed by agents of the Department of Energy in October 2011 and admitted to knowingly receiving income without reporting it on the annual certification.

Szudera’s inflated workers compensation benefit checks were mailed from the U.S. Treasury to his home in Havre. The investigation was a cooperative effort between the U.S. Department of Energy – Office of Inspector General and the U.S. Department of Labor – Office of Inspector General.

Szudera was sentenced to four years of probation, a special assessment of $500, restitution of $83,700.59, and a fine of $3,000.

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