Investigators: Tacoma couple swindled state out of $223K
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TACOMA, Wash. -- A Tacoma couple accused of defrauding the state of nearly a quarter million dollars in workers' comp benefits insists they were too injured to work, but investigators say they have video that proves otherwise.
Washington receives more than 1,500 tips about worker fraud each year, and one tip led investigators to Larry Beroth.
In 2009, Beroth and his wife filed claims saying neither could work after being injured on the job at their Tacoma drywall business. Detectives say he signed her paperwork in the case, and she signed his.
Over the next two years, the couple collected $223,000 in taxpayer benefits. All the while, investigators say they continued to work.
"We had been paying them benefits believing that they were out of work, when in fact they were working the entire time," said Elizabeth Smith, fraud prevention and compliance program manager with Washington Labor and Industries.
After being tipped off about the alleged fraud, investigators secretly videotaped the couple. The footage shows Larry Beroth lifting boxes, pulling supplies and even kneeling to roll up a hose.
The state filed charges against the Beroths earlier this month. In court documents, Larry told investigators "he was guilty and would just like to know how much he owned the department." His wife said "she knew what they did was wrong, but at times felt they had no choice," according to the documents.
Despite those admissions, the couple pleaded not guilty in court. Their attorney had no comment on the story.
"It's a pretty egregious case," Smith said.
It's a case the state says scratches the surface on the larger issue of people defrauding taxpayers and scamming the system. Investigators hope the case, as well as the video, deliver an important message.
"Fraud costs workers and businesses millions of dollars a year every year in Washington state," Smith said.
Both Larry and Jamie Beroth are facing charges of first degree theft.
Washington receives more than 1,500 tips about worker fraud each year, and one tip led investigators to Larry Beroth.
In 2009, Beroth and his wife filed claims saying neither could work after being injured on the job at their Tacoma drywall business. Detectives say he signed her paperwork in the case, and she signed his.
Over the next two years, the couple collected $223,000 in taxpayer benefits. All the while, investigators say they continued to work.
"We had been paying them benefits believing that they were out of work, when in fact they were working the entire time," said Elizabeth Smith, fraud prevention and compliance program manager with Washington Labor and Industries.
After being tipped off about the alleged fraud, investigators secretly videotaped the couple. The footage shows Larry Beroth lifting boxes, pulling supplies and even kneeling to roll up a hose.
The state filed charges against the Beroths earlier this month. In court documents, Larry told investigators "he was guilty and would just like to know how much he owned the department." His wife said "she knew what they did was wrong, but at times felt they had no choice," according to the documents.
Despite those admissions, the couple pleaded not guilty in court. Their attorney had no comment on the story.
"It's a pretty egregious case," Smith said.
It's a case the state says scratches the surface on the larger issue of people defrauding taxpayers and scamming the system. Investigators hope the case, as well as the video, deliver an important message.
"Fraud costs workers and businesses millions of dollars a year every year in Washington state," Smith said.
Both Larry and Jamie Beroth are facing charges of first degree theft.
One thing people fail to realize, If the disability is chronic pain high levels of narcotic pain medication can take you from non functioning to a functioning state. I'm not condoning what they have or have not done, but we don't have the whole story. I have chronic low back pain from a ruptured disk, bone spurs and degenerative disk disease. Without medication I can't function but with medication I can function enough to where I don't look like i have a disability. Just saying sometimes looks can be deceiving.
HOW ARE THEY MAKING $223,000 FROM THE STATE IN TWO YEARS?!?!?!
Losers.
Gee, I wonder who they voted for this past election?
 @WhatsonTapps Romney probably.
The only good thing from shutting down my business for last 3 years is not having to deal with the idiots of L&I.
"Over the next two years, the couple collected $223,000 in taxpayer benefits."
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that is over 100,000 each per year. L&I pays out full lost wages? wouldn't have thought it goes that high.  But then I've never filed a claim against L&I so have no idea if this is at the high end or something.Â
Benefits are not all $$$.
 @pfeller That would have been about $50,000 each. Probably not what their full wages would have been.
i am still baffled how this happened? workers are not just allowed to state they cannot work - they must be under a doctors care with the doc documenting the inability to work and quite often further evaluations by L&I chosen doctors. the whole story isn't being reported here.
@justme True but if a doctor releases the person to light duty the employer can just say "I don't have light duty available" and L&I continues to pay for their timeloss. Being that they were the owners they could have pulled that off easilly. Eventually they would have had to have independent medical exams but L&I needs constant pressure to get anything done and if neither the employer or patient are pressuring L&I then it can easily slip through the cracks and either take months/years to get done or not get done at all.Â
What about DHS and all the fraudlent clients on that system state by state.. We need to let ICE do their job and support them. That will shave some faud off the states back and all the other states will follow..and benefit.too.
@R DSHS doesn't have anything to do with L&I. These people should have had an Independent Medical Exam from a Dr through Labor And Industries to validate their claim.
@R DSHS doesn't care about welfare fraud unless its on the provider's end. It would make far too much sense to go after the individuals commiting welfare fraud too and we all know DSHS doesn't do anything that makes sense.
 @R What the heck does ICE have to do with this? There's no illegal immigrants mentioned.