Commonwealth v. James O. Mills

Facts

The defendant, a retired cop, was diagnosed with hypertensive heart disease. He applied for and received a nontaxable accidental disability pension of approximately $15,500 per year. The defendant then began to run a private investigation business, Mills Investigations, out of his home in New Hampshire.

Between 1992 and 1994, the defendant received approximately $45,000 in nontaxable accidental disability benefits from the board. Once approved for a disability pension, the only limitation to keeping the full amount received each year is the amount of income the recipient earns, if any, during that same time period. Following receipt of pension benefits, every disability pensioner is required by statute to file with the board a yearly earnings report.

The board estimated that the defendant could earn up to $30,228 in 1992, $30,820 in 1993, and $32,484 in 1994 before being liable for any refunds. For 1992, the defendant withdrew $89,637 from the corporate account of Mills Investigations for his own personal use; he reported to the board that he had earned a total of $25,000. For 1993, the defendant withdrew $65,640 from the corporate account of Mills Investigations for his own personal use; he reported to the board that he had earned a total of $17,500. For 1994, the defendant withdrew $104,494 from the corporate account of Mills Investigations for his own personal use; he reported to the board that he had earned a total of $30,000. As a result of the defendant under-reporting his earnings, the board never sought a refund of any pension money.

He was convicted of several crimes, including larceny.