Washington state man sentenced to home confinement for benefits fraud

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Getting caught working on his sailboat while collecting disability pay will result in six months of electronic home monitoring for a West Seattle, Wash., man.

Edward Charles Bailey, 59, received the sentence, plus an order to pay $26,000 in restitution, after pleading guilty to first-degree theft in an insurance case, according to the Washington State Office of the Insurance Commissioner.

Bailey reported an on-the-job back injury to his employer in 2006 and was subsequently placed on temporary total disability, receiving pay from his employer’s insurer, Alaska National Insurance, officials said. Doctors ruled him unable to return to work.

Five weeks after the injury, however, investigators working for Alaska National videotaped Bailey “working vigorously” on his sailboat at a Seattle marina, the department said. He was seen sanding, painting, climbing and moving machinery, the department said. All of those actions were contrary to the physical restrictions imposed by Bailey’s doctors, according to investigators with the department.

Upon viewing the video, the independent medical examination doctors who originally deemed Bailey unable to work reversed their original opinion.

The $26,000 in restitution Bailey must pay covers unnecessary medical expenses and disability benefits that he was not entitled to, Washington state officials said.

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