Washington metal fabricator faces $340,000 fraud

A Washington man who claimed he was too injured to work while operating a metal fabrication shop is facing a felony charge in an alleged $340,000 workers’ compensation scam.

Travis Lee Johnson, 52, of Spokane Valley, recently pleaded not guilty to first-degree theft in Spokane County Superior Court.

Johnson is accused of manufacturing and selling metal products for more than four years while collecting wage replacement payments from the state’s injured worker fund. At the same time, he told the Washington State Department of Labor and Industries that he was unable to work because of a workplace injury.

An L&I investigation determined that Johnson collected more than $340,000 in salary replacement payments and $25,000 in professional services from March 2018 through October 2022.

Johnson injured his lower back, right arm and hand when he slipped on ice while working as a truck driver in January 2018. Based on Johnson’s statements, his doctor determined that Johnson was unable to work due to the injury, according to the indictment.

The doctor’s determination was one of the requirements that allowed him to receive payments to replace some of his lost wages. In order to continue receiving benefits, Johnson submitted 57 official forms to L&I over more than four years stating that he was not working because of his on-the-job injury, charging documents said.

L&I began investigating Johnson in May 2022 after suspecting he was doing more physical activity than his doctor recommended.

The investigation found that two weeks after his injury, Johnson opened a business account with the Washington State Department of Revenue. Using two trade names, Bad Ass Fab and TLJ Fabrication, Johnson allegedly made and sold a variety of metal products, including mirror extensions built to be attached to semi-trucks carrying heavy loads.

An investigator recorded Johnson over several days in his store manually lifting heavy objects such as couches and the tailgate of a pickup truck, using a hammer and other tools, driving a forklift and performing other physical work-related tasks.

After viewing investigators’ surveillance videos, Johnson’s doctor said his patient misrepresented his physical condition and abilities, according to charging documents. The doctor concluded that Johnson was in fact able to return to work on January 22, 2018, the day he opened his business account with the department of revenue.

The Washington State Attorney General’s Office is pursuing the case under investigation. He is scheduled for trial on November 12.

TOPICS
Washington Manufacturing Workers Compensation