PORTLAND, Maine, August 22, 2003 – Arthur Rasmussen of Edgecomb, Maine, has pleaded guilty to one count of theft, a Class C felony under Maine law, in Sagadahoc County District Court as a result of his fraudulent collection of workers' compensation benefits.

Rasmussen, a carpenter, was sentenced to a suspended three-year term in jail, four years probation, a $1,000 fine and was ordered to pay restitution in the amount of $3,015.96 to insurer Maine Employers' Mutual Insurance Company (MEMIC).

Rasmussen claimed an injury in early 2000 but was found to have been performing work soon thereafter while receiving benefits and despite claims to the contrary. When informed that he had been caught on videotape, Rasmussen signed a consent agreement admitting to fraud and agreeing to re-pay the insurer for the indemnity benefits it had provided. But when Rasmussen did not make the promised payments, the company pressed the case with the District Attorney in Sagadahoc County. MEMIC provided testimony to a grand jury in February 2003 which led to the recent plea agreement.

"Fraud within the workers' comp system is a travesty that we will not abide," said MEMIC Vice President of Claims John F. Marr. "This kind of behavior only serves to hurt those people who are legitimately injured. MEMIC has always done its utmost to fully prosecute these cases and we will continue to do so. We hope that this case will serve as a warning to those who may seek to fraudulently claim workers' compensation benefits."

The Special Investigation Unit of MEMIC's Claims Department is staffed by professional investigators, including several former officers of the Maine State Police. They are assigned only to those cases that show an indication of fraud. Since inception in 1993, MEMIC's investigations unit has saved the company and its policyholders an estimated $20 M.

MEMIC is Maine's largest and leading workers' compensation insurer, providing coverage to more than 21,000 employers and their estimated 250,000 employees. The company is rated "A" Excellent by A.M. Best, the insurance industry's most respected benchmarking organization. It is the parent company of MEMIC Indemnity Company, a workers' compensation specialty insurer based in Manchester, New Hampshire with licenses to provide workers' compensation in New Hampshire, Vermont, Massachusetts and Connecticut.