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Swinger couple convicted in shooting-related comp fraud

Posted On: Mar. 7, 2016 12:00 AM CST

A California couple convicted of multiple insurance fraud felonies was sentenced to 240 days in jail and ordered to pay more than $38,000 in restitution to the State Compensation Insurance Fund, the Sacramento County District Attorney's Office said.

Claiming he was shot and paralyzed while on duty in San Francisco, John Smiley, a former correctional officer with the California Department of Corrections and Rehabilitation, filed a claim for workers compensation benefits, according to a Friday statement by the Sacramento County District Attorney's Office.

However, Deputy District Attorney Kelly Mulcahy said the April 2008 shooting was not work-related and that it occurred after Mr. Smiley and his wife Cynthia Biasi-Smiley visited a San Francisco swinger's club, according to the statement.

An argument allegedly ensued over whether Mr. Smiley wore a condom while having sexual intercourse with another woman, the statement says. As the Smileys walked to their car, Mr. Smiley was shot in the back by the woman's male companion.

Nearly one year later, Mr. Smiley filed a claim for workers comp benefits and Ms. Biasi-Smiley filed a lien for workers comp benefits based on her care of her husband, according to the statement.

“The Smileys testified under oath at a deposition that they could not remember the club/restaurant they were leaving when the shooting occurred, and could think of no reason why the man would have wanted to kill John,” according to the statement.

In addition, Mr. Smiley said he recognized the shooter as a parolee he had once transported, though, he previously told the San Francisco Police Department the shooting had nothing to do with his work as a correctional officer, the statement said.

The claim would have qualified Mr. Smiley and Ms. Biasi-Smiley for compensation from the State Compensation Insurance Fund and the California Public Employees' Retirement System, according to the statement. Mr. Smiley would have received $3,002 a month for life, untaxed. His wife would have continued receiving the benefit after his death.