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Insurance agent charged in $233,000 workers comp fraud

Insurance agent charged in $233,000 workers comp fraud

An insurance agent in Washington state was charged with felony theft in a $233,000 workers comp scam, according to a statement Thursday by the Washington Department of Labor and Industries.

James C. Kooy, 53, of Lake Stevens, Washington, pleaded not guilty to first-degree theft on July 5 in Snohomish County Superior Court. Mr. Kooy claimed he was unable to work while he but was running his own insurance agency. His trial is scheduled for Sept. 28, the department said in the statement. 

In 2008, Mr. Kooy began receiving wage-replacement from the department for a knee injury he suffered while working as a heavy equipment operator. Two years later, he filed a claim for a repetitive-motion injury to his shoulders and hands while working at the same job. In 2010, Mr. Kooy opened By the Lake Insurance Inc., where he served as president, agent and 50% owner, selling policies through a national insurance company. 

A 2015 investigation by the department found that Mr. Kooy’s business generated more than $800,000 in revenue from 2010 to 2015, during which time he received more than $233,000 in wage replacement payments, the department said.





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