One Washington State business owner recently cooked up some trouble that they wish they never would have started.
As the state’s Department of Labor and Industries (L&I) reported, the Spokane restaurant owner faces a felony theft charge alleging she defrauded the state of nearly $250,000 in workers compensation benefits over eight years while claiming she could not work.
According to investigators, Wanitta Racicot, 69, was cooking, busing tables and performing other duties at a restaurant that she co-owns, all the while collecting benefits.
The Attorney General’s Office recently charged Racicot, of Spokane Valley, with one count of first-degree theft in Spokane County Superior Court. Racicot is scheduled to enter her plea to the charge on Sept. 4.
Worker Signed Documents Saying She Was Unemployed
According to court documents, Racicot filed for workers comp with L&I in 2001, claiming she injured both of her arms while working at a restaurant. After opening her claim, she regularly signed official documents stating she was not employed and was unable to work due to her injury.
In August 2011, L&I launched an investigation after Racicot’s case raised red flags to a department employee, who was examining whether Racicot should be referred for a pension.
At the time of the investigation, Racicot told an investigator that her hands remained so damaged that she could not button shirts or put on earrings, court documents said. The same month, an investigator witnessed Racicot carrying groceries, busing heavy dishes, scrubbing the bar counter and doing other tasks at her Spokane business, Broadway Bar and Grill, on multiple days.
It also didn’t help Racicot’s case that current and former employees and business associates told the investigator she had been working at the restaurant for more than five years, and one employee said she had been doing so since at least 2001. The charge alleges Racicot fraudulently received $249,267 in “time-loss” benefits for replacement of lost wages from March 2003 until August 2011.
First-degree theft carries a maximum penalty of 10 years in prison plus a $20,000 fine and costs.
Author Michael B. Stack, CPA, Director of Operations, Amaxx Risk Solutions, Inc. is an expert in employer communication systems and part of the Amaxx team helping companies reduce their workers compensation costs by 20% to 50%. He is a writer, speaker, and website publisher. www.reduceyourworkerscomp.com. Contact: [email protected].
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