CENTRAL ISLIP — A federal jury in Central Islip convicted former United States Postal Service employee Luann Middleton of wire fraud on September 11, 2026. The jury found Middleton guilty of repeatedly submitting false workers' compensation forms to the United States Department of Labor in which she claimed total disability.

Middleton received approximately $40,000 per year in federal workers’ compensation benefits for nearly 25 years. Records from the USPS and DOL indicate that Middleton received more than $900,000 in fraudulent workers’ compensation benefits. She faces up to 20 years in prison and financial penalties when sentenced.

The verdict followed a four-day trial before United States District Judge Gary R. Brown. Assistant United States Attorneys Charles P. Kelly and Ashlyn Miranda were in charge of the prosecution, with the assistance of Paralegal Specialist Samantha Schroder. United States Attorney Joseph Nocella, Jr. and Matthew M. Modafferi, Special Agent in Charge of the USPS Office of Inspector General Northeast Area Field Office, announced the verdict.

In August 1997, Middleton claimed she had sustained an injury to her lower back while performing her duties as a postal clerk. She submitted a claim for compensation to the DOL and began receiving workers’ compensation benefits approximately three months later. Middleton briefly returned to work in a limited duty capacity in February 1999 after a medical doctor found she was capable of working.

She later claimed a recurrence of her back injury rendered her totally and permanently disabled and again began receiving workers’ compensation benefits from the DOL. Between November 1997 and September 2022, Middleton regularly submitted medical evaluations and records to the USPS and the DOL claiming she was incapable of returning to work and was totally disabled. The submitted evaluations claimed Middleton could sit, stand, walk, bend, lift and reach above her shoulders for zero hours and could not participate in any physical activities because of excruciating back pain.

Investigation revealed that between October 2015 and March 2022, Middleton engaged in physical activities including cleaning out a garage, sitting through a movie for more than two hours, standing for more than one hour at a cookie decorating class, climbing stairs and retail shopping. Middleton was observed and captured on video footage carrying groceries and laundry bags, lifting and reaching for objects at heights she claimed she could not reach, bending to the floor to retrieve items, and hoisting a bag of potting soil from the bottom of her shopping cart into her vehicle.

"For more than 20 years and until her lies caught up to her, the defendant refused to come to work and instead collected tax-free disability benefits for a highly-exaggerated injury," United States Attorney Joseph Nocella, Jr. said. "Our Office and the Administration has made it a priority to hold accountable those who exploit government benefits programs for personal gain and steal funds that are designated for workers who truly need them."