Former Owner and Operator of Norfolk Dermatology Practice Sentenced for Stealing Over $310,000 in Government Benefits

From the U.S. Attorney’s Office, District of Massachusetts

BOSTON – The former owner and operator of a Norfolk-based dermatology practice was sentenced today in federal court in Worcester for fraudulently receiving federal workers’ compensation and disability benefits from the Social Security Administration (SSA).    

Karen Nolan, 66, of Norwood, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to time served (one day in prison) and three years of supervised release, with the first six months in home confinement. Nolan was also ordered to pay restitution of $235,563 to the Department of Labor, Office of Workers’ Compensation Programs (OWCP) and $78,446 to the SSA. On Sept. 22, 2023, Nolan pleaded guilty to two counts of theft of public funds and two counts of making false statements. 

From approximately November 2017 through August 2021, Nolan stole federal workers’ compensation benefits and Social Security disability benefits from approximately July 2019 through August 2021, totaling more than $310,000. In April 2019, Nolan falsely reported to the SSA that she had not worked since 2017 due to a medical disability, but was actively self-employed at a dermatology practice at the time. Nolan also made similar false statements to OWCP in May 2021.

Acting United States Attorney Joshua S. Levy; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Sharon MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Anthony DiPaolo, Chief of Investigations, Insurance Fraud Bureau of Massachusetts made the announcement today. Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit prosecuted the case.