North Carolina Workers' Compensation Fraud Watchers Astounded by Salacious Case out of California

April 13, 2010, by Michael A. DeMayo

Bloggers who follow North Carolina workers’ compensation fraud cases have been riveted by a scandal out of San Francisco, California that’s captured national headlines.

Here is the nitty-gritty:

High-ranking Department of Corrections official John Smiley and his wife have been arrested for a workers’ compensation fraud following a shootout at a San Francisco swingers club.

Mr. Smiley alleged that one of his parolees shot him and that he deserved $2.4 million in workers’ comp benefits. His sympathetic co-workers also set up a golf tournament to rake in funds for him, netting him $30,000. In addition, John and his wife’s mother made a website, on which he expanded on his lie that a parolee shot him.

The truth, according to investigators, was a lot more salacious and twisted. Apparently, Smiley and his wife had gone to a swingers club, connected with another couple, and Smiley had sex with a female partner. But during intercourse, his condom broke open, and the woman’s partner became enraged and shot him.

If the allegations against the Smileys are true, not only is it a black eye for the Department of Corrections but is also a wake up call for North Carolina workers’ compensation fraud experts to double-check to make sure they are doing due diligence.

Individuals who make false allegations about injuries and occupational disease to game the North Carolina workers’ compensation system cause problems for everyone else. Insurers must raise rates to make up for costs, employers must carry more insurance, and employees who actually deserve benefits may have to jump through more hoops and may see fewer benefits over the long term.

Unfortunately, due to the prevalence of North Carolina workers’ compensation fraud schemes (and schemes in other states), legitimate claimants suffer undue harassment. If you or a loved one is having trouble dealing with an insurance company, an employer, or even with the North Carolina Industrial Commission, you might want to connect with a credentialed and vetted North Carolina workers’ compensation lawyer ASAP to go over your concerns and figure out a plan of attack.

More Web Resources:

John Smiley

Smiley Website