Martha’s Vineyard Mason Sentenced For Workers’ Compensation Fraud
In September 2022, a former stone mason from Edgartown, Martha’s Vineyard, Georgy Pyden, was indicted for workers’ compensation fraud and grand larceny involving A.I.M. Mutual. See Agency Checklists’ September 22, 2022 article, “Edgartown Masonry Company Owner Indicted For Workers’ Compensation Fraud.
On April 27, 2023, Mr. Pyden pleaded guilty to the eight felony charges in the indictment:
Four counts of workers’ compensation fraud, and
Four counts of grand larceny
Twenty-eight years working as a mason on Martha’s Vineyard.
At the time of his indictment, Mr. Pyden had worked as a residential and commercial mason on Martha’s Vineyard for over 28 years. In 2012, he incorporated his business as Rockwell Masonry, Inc. (Rockwell). Mr. Pyden was the president, treasurer, and sole director of Rockwell.
Four months before his indictment, in May 2022, Mr. Pyden dissolved Rockwell and retired to Florida.
Four years of fraudulent reporting of employees
Between 2016, and 2020, Rockwell had A.I.M. Mutual (A.I.M.) as its assigned carrier for workers’ compensation insurance.
During this period, Rockwell reported to A.I.M. that it only had one employee: Mr. Pyden. However, Rockwell failed to report its other employees to obtain a lower premium for its workers’ compensation insurance.
Over the four-year period involved in the indictment, Mr. Pyden’s false statements concerning Rockwell’s employees defrauded A.I.M. to lose $37,488.32 in premiums based on the following yearly totals:
From January 25, 2016, to January 25, 2017, $11,091.03
From January 25, 2017, to January 25, 2018, $7,223.47
From January 25, 2018, to January 25, 2019, $5,486.14
From January 25, 2019, to January 25, 2020, $13,687.68
Attorney General agrees to a recommendation of three years probation and restitution
Based on a plea agreement, the Attorney General and Mr. Pyden’s defense attorney presented a joint recommendation for a resolution of the charges against Mr. Pyden in consideration of his pleading guilty to all charges.
The joint sentencing memorandum noted for the Judge, as required by the Massachusetts Sentencing Guidelines, the aggravating or enhancement factors for the crimes that Mr. Pyden committed, which included that:
He knowingly conducted a complex scheme to defraud his insurance carrier and,
He had repeatedly conducted the scheme over numerous years, even beyond the period he was charged for, “suggesting a pattern of fraudulent behavior since 2012.”
However, the mitigating factors that the joint memorandum presented to the Court were:
Mr. Pyden has a very limited criminal record, with only minor charges from over 25 years ago.
He was no longer associated with Rockwell Masonry, which had been voluntarily dissolved.
He had retired, distancing him from the conditions that led to the fraud; and
At 55 years old, he is a grandfather who has moved to Florida, reducing the likelihood of recidivism.
The Court agrees with the sentencing recommendation of Mr. Pyden’s counsel and Attorney General
On April 27, 2023, Mr. Pyden, after waiving his appearance in person, and having his motion for a plea hearing by videoconference allowed, appeared in the Dukes County Superior Court from Floridan via Zoom.
After entering a change of plea and satisfying the Court as to the voluntariness of his guilty pleas and his understanding of the consequences of his pleas, Superior Court Judge Douglas Wilkins accepted his guilty pleas.
Judge Wilkins also accepted the joint recommendation of the Attorney General and defense counsel, imposed three years probation on Mr. Pyden, and ordered Mr. Pyden to make $37,488.00 in restitution to A.I.M. Mutual in payments of $1,042.00 per month.
