Ogdensburg family care provider accused of illegally collecting $46,800 in disability payments
Wednesday, October 20, 2010 - 11:51 am

OGDENSBURG -- An Ogdensburg woman is accused of working while taking benefits for a disability she claimed made her unable to work.

Karen L. Davis, 52, of Washington Street, was arrested by state police Oct. 10 for collecting $46,800 in disability benefits while working as a self-employed family care provider, the New York State Insurance Department reported.

She was arrested by state police at Ogdensburg.

Davis started collecting disability in 2005 after claiming that a job-related injury left her unable to work because of chronic neck pain. She claimed she suffered the injury while working as a rehabilitation specialist with the Cerebral Palsy Association of the North Country.

Investigators with the Insurance Department's Frauds Bureau say they discovered that Davis later worked as a family care provider and submitted documents to an insurer, the Unum Group, falsely stating that she was physically unable to work.

She was charged with third degree insurance fraud and a first degree count of falsifying business records. She could be sentenced to seven years in prison if she is convicted. She was released in her own recognizance pending a hearing.

The case is being prosecuted by St. Lawrence County Chief Assistant District Attorney Amanda Palmer.