July 22, 2014 in City

L&I alleges disability scam by Spokane business owner

By The Spokesman-Review

A Spokane business owner has been charged with first-degree theft after allegedly taking $101,000 in disability benefits while still working.

Mistie S. Crosby, 52, filed a claim after she said she hurt her back, neck and shoulder in September 2010 while working at the now closed Sunset Junction nightclub, according to a press release from the Department of Labor and Industries. She received $59,000 in wage replacement benefits and $42,000 in medical and vocational benefits through early 2013.

Crosby regularly filled out forms stating that she wasn’t working and wasn’t capable of working, the press release said. Labor and Industries received a tip that Crosby was running a scam. An investigation showed that Crosby was working at the Lascelle Motel and an apartment complex while she was receiving benefits.

Crosby reportedly told investigators that she co-owned the defunct nightclub, the motel and the apartment complex with her husband, the press release said. She had not previously disclosed her ownership of the business where she was injured.

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