Archived News Release — Caution: Information may be out of date.

U.S. DEPARTMENT OF LABOR

OIG Press Release: U.S. Department of Labor Contractor is Indicted for Mail Fraud and False Claims [11/19/1997]

For more information call: (202) 219-9301

Regional Inspector General for Investigations Landrum R. Landreth, Jr., U.S. Department of Labor, Office of Inspector General (OIG) announced that in the U.S. District Court for the District of Columbia, a 20-count criminal indictment was returned today by the grand jury charging JOHN E. MILLS, 48, of Washington, D.C., with mail fraud and false claims as part of a scheme to defraud the U.S. Department of Labor's Office of Workers' Compensation Programs.

The indictment charges that during the period 1991 until 1997, MILLS submitted false and fraudulent rehabilitation bills. These bills were for vocational counseling services provided to injured federal workers. The indictment alleges that MILLS knowingly submitted inflated and fraudulent bills for services that he never provided.

MILLS is the owner of United Counseling Services (formerly Universal Resources Center), where he worked as a vocational rehabilitation counselor. Since 1988, MILLS and his company were under a contractual agreement with the U.S. Department of Labor to provide rehabilitation services to injured federal workers. These rehabilitation services were provided under the Federal Employees' Compensation Act.

The OIG investigation disclosed that MILLS collected in excess of $711,000 from the U.S. Department of Labor. Based on a review of 14 injured worker files, it was determined that 40 percent of the amount billed were inflated or fraudulent. If this holds true for the remaining files, then the fraud is estimated to be approximately $284,000.

The investigation was conducted by the Office of Investigations, Office of Inspector General, U.S. Department of Labor and the U.S. Attorney's Office for the District of Columbia.

Archived News Release — Caution: Information may be out of date.