Former Pennsylvania state judge's trial continues

PITTSBURGH, Oct 30, 2008 (Erie Times-News - McClatchy-Tribune Information Services via COMTEX) -- ERIE | Quote | Chart | News | PowerRating -- William Burt, a claims specialist with State Farm insurance, told jurors he approved a $50,000 settlement with former state Superior Court Judge Michael T. Joyce based on Joyce's description of his injuries and on what Joyce's medical providers said in a 3-inch stack of medical records.

"I thought this case would be very straightforward," Burt said Wednesday in U.S. District Court.

"I placed a high degree of credibility on a person who had obtained such a position."

Burt said that had Joyce also told him that he was in-line skating regularly, golfing, flying planes and earning medical clearance from the Federal Aviation Administration at the same time he was claiming debilitating injuries, he might have weighed the claim differently.

"I would like to think I would have asked further questions," Burt said.

Joyce's trial on federal moneylaundering and mail-fraud charges continued Wednesday as Assistant U.S. Attorneys Christian Trabold and Christine Sanner called more witnesses to support the government's claim that Joyce fraudulently claimed he suffered debilitating injuries in a two-car collision Aug. 10, 2001, at the intersection of Asbury Road and West 12th Street.

State Farm, the insurer of Amber Cooper, the woman whose vehicle struck Joyce's Mercedes-Benz, paid Joyce $50,000. His own insurer, Erie Insurance Group, paid him $390,000.

The settlements were based on Joyce's claim that the impact aggravated a pre-existing condition in the cervical area of his spine. He said he suffered excruciating headaches, weakness, muscle twitching, and loss of memory and concentration.

The defense said the claim was legitimate and backed by medical evidence.

The government said the claim was riddled with lies, half-truths and omissions, and driven by greed and a need for money.

It is seeking the forfeiture of items Joyce bought with the insurance proceeds, including a motorcycle and his Millcreek Township home.

Witnesses who testified Wednesday fell into three categories: one who testified about Joyce's alleged motive for the fraud -- financial need; those who testified about his physical activities, which the government say belie his claim; and those who handled his State Farm claim.

Testimony ended about an hour early because at least one witness was not able to travel from Erie on Wednesday.

State Farm claims representative Emeline Ahrens testified that Joyce told the company on Aug. 23, 2001, that he had a previous back injury and that as a result of the collision with Cooper, he was feeling some neck pain and numbness in his right arm and hip.

He said, however, that he did not intend to file a personal injury claim. Ahrens testified she closed Joyce's file after advising him that he had two years to make a claim.

The file was reopened in June or July of 2002, when Joyce notified the company he did intend to file a claim.

In a letter written to Burt, the State Farm claims representative then handling the claim, Joyce said his physical activities had been limited by his injuries and his comprehension and memory were so compromised that he was forced to work 12 hours a day every day to keep up with his workload.

Joyce said his mental problems were due to a closed head injury.

He signed a release granting Burt access to his medical records.

Burt said he reviewed the medical records to the best of his ability and placed great stock in them and in Joyce's description of his condition.

"In the position of Superior Court judge, the ability to review material and comprehend and utilize material, I would think that would be significant," he said.

Under cross-examination by defense lawyer Philip Friedman, Burt acknowledged that Joyce was under no obligation to provide information to State Farm to back his claim, and that had Burt chosen to, he could have independently investigated Joyce's claims or forced Joyce to litigate the claim.

The government also continued to present more evidence of Joyce's physical activities during and after the time he claimed he was impaired.

Delight Stevens, the former controller of a local lawn-chemical company, said Joyce regularly attended company trips to Jamaica.

In January 2002, she said she was with him golfing on a trip to Runaway Bay, Jamaica.

Janice Kline showed jurors pictures of Joyce scuba diving in bright blue, sunlit waters of the Caribbean island of Bonaire in October2004. In one photo, Joyce was climbing up a ladder to the deck outside the house where Kline, Joyce and four others in their group were staying.

Steve Lesko told jurors that he socialized with Joyce off and on for 15 years. He said they shared an interest in cars, the stock market and going out. He said he knew Joyce had been in a collision, but he saw no sign and heard no complaints of any injuries.

The defense challenged each of these witnesses, as it has in days past, by asking whether they had the kind of relationship with Joyce in which he would share his medical problems and by probing the extent of their knowledge of Joyce's activities and lifestyle.

Lesko said he only remembers Joyce talking about his health once. He said they were sitting in his hot tub smoking cigars when Joyce told him he thought he might have Lou Gehrig's disease.

Lesko said he did not put much stock in the remark because Joyce was going through a difficult breakup with longtime girlfriend Shelane Buehler at the time.

"He was down and upset, and looking for a little bit of sympathy," Lesko said.

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