
Correction: Upon careful review and after subsequent communication with the U.S. Attorney's Office, we have learned that a quote included in a previous version of this article was erroneously attributed to Acting United States Attorney Joshua S. Levy. The statement, "Theft of public funds is a serious crime that takes resources away from federal programs designed to help those truly in need," was not made by Mr. Levy or provided by any representative of the U.S. Attorney's Office. We apologize for this error and any confusion it may have caused. We are committed to accurate and responsible reporting and have removed the inaccurate quote from our article. We have also reviewed and strengthened our editorial processes to prevent such occurrences in the future.
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Please see the revised article below, which has been updated to reflect these changes.
A former Norfolk dermatology practice owner got a light slap on the wrist for swindling over $310,000 in federal benefits. Sixty-six-year-old Karen Nolan of Norwood was handed a time-served sentence—a mere day in prison—and three years of supervised release, which includes a six-month stint of home confinement, a Boston federal court ruled on Wednesday.
Nolan, who pleaded guilty to a duo of theft and false statement counts in September, was also told she must cough up $235,563 in restitution to the Department of Labor's Office of Workers' Compensation Programs and $78,446 to the Social Security Administration. According to the Justice Department, from late 2017 to August 2021, Nolan pocketed federal workers' compensation and disability benefits, all the while working at her own dermatology clinic.
Her deception was unveiled when she claimed to the SSA in 2019 that she hadn't worked for two years due to a medical disability, despite being gainfully employed at the time. The ruse continued when she shared similar false statements with the OWCP in 2021. Acting United States Attorney Joshua S. Levy and a troupe of agencies, including the Department of Veterans Affairs and the Social Security Administration, brought Nolan's scheme to light.
Despite the serious nature of Nolan's actions, the court's decision to impose only a day of prison time raises eyebrows about the penalties for defrauding government systems. The case was brought forward by a team spearheaded by Special Assistant U.S. Attorney James J. Nagelberg of the Major Crimes Unit.









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