A Spokane woman is charged first-degree felony theft, accused of defrauding the state of $101,000 in disability benefits while working with her husband to operate his motel and their nightclub and apartment building.
In September 2010, 52-year-old Mistie Crosby submitted a claim to Labor and Industries (L&I) saying she hurt her back, neck and shoulder while working at Sunset Junction, a nightclub in Spokane that has since closed. Physicians confirmed she was injured and L&I opened her claim.
When Crosby submitted the claim, she did not indicate whether she was an owner, partner or corporate officers in the business where she was injured. Business owners must provide employees with workers' compensation insurance, but the coverage is optional for the owners themselves and Crosby never enrolled.