Man jailed for defrauding province’s Workers’ Compensation Board of $137K

The red flag that led to the largest fraud case in the history of the Saskatchewan Workers’ Compensation Board (WCB) appeared when a case worker requested further evidence of Larry Hayter’s employment — evidence he was never able to provide.

Hayter, of Hudson Bay, Sask., initially said he was being paid under the table, Crown prosecutor Darren Howarth said. That prompted an internal investigation that soon grew to include the RCMP.

Hayter, 69, was found guilty of fraud over $5,000 in Melfort Court of Queen’s Bench last week for defrauding the WCB of $137,377.76. Spokeswoman Heather Getz confirmed it is the largest WCB fraud the province has ever seen.

Howarth said Hayter was convicted of filing two false claims and returning to work while receiving benefits between 2006 and 2011. He was sentenced to two-and-a -half years in jail and must pay back the full amount.

During his trial earlier this month, Hayter claimed he was a labourer in the forestry industry for a company called Akosane Holding, Howarth said.

However, the court ruled that his relationship with the company resembled that of an owner/ operator — not a mere employee — and that he was not earning a salary or wage.

Howarth said the court also found that Hayter was involved with a sports bar during the time he filed WCB claims. The judge’s ruling stated that “a reasonably decent person would consider it dishonest and unscrupulous” for Hayter to also collect wage loss benefits and advise the WCB that he couldn’t work because of an elbow and knee injury.

Although there was no evidence Hayter was being paid, RCMP officers said he was running the bar every time they visited, and several witnesses believed he was the owner, Howarth noted.