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bar owner comp scam

Caught on Camera: Man Filmed Tending Bar and Restocking Shelves While Claiming Disability

Oct. 9, 2017
A Spokane-area bar owner has been charged with faking injuries in a $230,000 workers’ compensation scam.

Dennis J. Bennett, 63, of Veradale, Wash., stands accused of running a bar while claiming he was too injured to work. While claiming he was disabled, Bennett collected more than $230,000 in state workers’ compensation and federal disability benefits.

Bennett is scheduled to be arraigned on two charges of felony, first-degree theft on Oct.9 in Spokane County Superior Court. The Washington Attorney General’s office is prosecuting the case based on a joint investigation by the state Department of Labor & Industries (L&I) and the U.S. Social Security Administration.

According to the charges, Bennett wrongfully received more than $188,000 in wage-replacement benefits from L&I, and more than $47,000 in Social Security disability cash benefits at various times from 2012 to 2016.

“It’s possible to legally receive workers’ comp and Social Security benefits at the same time, but people need to tell the truth if they go to work or their physical abilities change,” said Elizabeth Smith, assistant director of L&I Fraud Prevention & Labor Standards. “The workers’ comp system is here to help legitimately injured workers heal and return to work. It’s our job to track down and hold people accountable who are stealing benefits they don’t have coming to them.”

Tending Bar, Stocking Supplies

Charging papers allege Bennett was operating his Spokane Valley business, the Cum Inn Bar & Grill, while telling state and federal authorities that he couldn’t work because he was injured on the job. He was being treated through his L&I claim for knee and back injuries, and later told the Social Security Administration he also had neck injuries.

Investigators witnessed and filmed Bennett regularly working at his bar during undercover surveillance in early 2016. They saw him serving beer and cocktails, cooking, stocking cabinets, helping load a cooler in a vehicle and walking normally. Alcohol distributors told investigators that Bennett placed and received orders, and at least one business had security video of him purchasing and lifting containers of alcohol. In addition, social media posts showed him working as a bartender, helping with karaoke and hosting a 2015 car show.

Spent 60-Plus Hours a Week at his Bar

Charging papers say that during a 2016 interview with investigators, Bennett acknowledged that he served customers and did other tasks in the 60-to-70 hours a week that he said he spent at the bar. He insisted that he didn’t consider it work. Yet, he admitted that if he didn’t do those tasks, he would have to pay someone else to do them.

Bennett originally was injured in 2002 while working for a trucking firm. Based partly on 
his alleged deception, doctors eventually reported to L&I that Bennett’s workplace injuries had grown so serious that he couldn’t work. The doctors’ findings, plus Bennett’s declarations that he wasn’t working, allowed him to receive partial replacement of his wages from L&I.

In 2016, an L&I investigator, who knew Bennett from a previous case, was at the bar for an unrelated investigation when he saw him working there. L&I then began investigating Bennett and enlisted the agents from Social Security’s Office of Inspector General. 

About the Author

Sandy Smith

Sandy Smith is the former content director of EHS Today, and is currently the EHSQ content & community lead at Intelex Technologies Inc. She has written about occupational safety and health and environmental issues since 1990.

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