Nailed: A fraud prevention and compliance blog

Written by Doric Olson, Fraud Prevention and Compliance manager at L&I.

Feb. 9, 2011

Aqua-logger’s benefits get axed

Ever watch the hit show on the History Channel called Ax Men? One of our fraud adjudicators watches it … and swiftly froze a pension based on what he saw.

54-year old James Frank Smith, who stars on the show with his son, has been charged. He is accused of drawing a disability pension while also working as a logger for his own business, S&S Aqua Logging.

Smith, a Roslyn resident, received workers’ compensation benefits for two significant workplace injuries occurring in 1993 and 1996. Due to his serious injuries, and after years of treatment aimed at returning him to employment, he was found to be unable to return to work in December 2007 and placed on pension.

L&I authorities froze his pension benefit and launched an investigation after seeing Smith on the show performing work he claimed he was not capable of doing. He is scheduled to be arraigned in a Thurston County court February 15th.

Smith first appeared in season two of Ax Men, salvaging logs from coastal Washington rivers. You can still see him in action on Ax Men working the rivers in Florida. Check out the show then leave us your comments! I’d love to hear what you think of this case.

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In a tough economy, businesses are looking for ways to cut costs. Unfortunately, breaking laws is not a good way to go about it.

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