EVERETT — A former Monroe corrections officer allegedly was working two jobs while claiming an accident at the prison left him too hurt to work. Now, John Gruden is facing a felony, accused of bilking the state out of more than $100,000 in worker’s compensation benefits.
Assistant Attorney General Richard Weber earlier this month filed a first-degree theft charge in the case. Weber alleges the crime is particularly egregious because the defendant’s deception spanned some five years and involved a large amount of money.
Gruden, 43, is expected to answer to the charge later this week. He reportedly no longer lives in Washington. Summonses were sent to addresses in Arizona and Michigan, according to court papers.
The alleged thefts occurred while Gruden was living in Arizona.
The on-the-job accident happened at the Monroe Correctional Complex on May 1, 2011. Gruden’s right ankle and foot were injured when someone fell on him during training, said Debby Abe, a spokeswoman for the state Department of Labor & Industries.
Gruden filed an injury claim the day he was hurt. He moved to Arizona three months later. A doctor certified that Gruden was unable to work, and the state sent the former corrections officer wage replacement benefits, up to $1,700 every two weeks.
Workers claiming benefits are required to periodically file verification forms, certifying that they aren’t able to work because of an industrial accident.
Gruden allegedly submitted 47 forms between November 2011 and January 2016, stating that he wasn’t working. On multiple occasions he also told L&I staff, including vocational counselors, that he couldn’t work because of his injuries, a state investigator wrote in court papers.
An investigation into his claims turned up a different story.
Gruden allegedly was working as a security guard in Arizona by October 2011 — some five months after his accident at the prison. He held the job until May 2012, earning about $21,000.
Employment records also show Gruden was hired in February 2013 as a public safety aide for Maricopa County Community College in the Phoenix area. He allegedly worked for the county for more than two years. His annual salary was listed at $34,648.
That wasn’t the only job Gruden was working in 2014 and 2015, according to court papers. He started working as a full-time municipal security guard with the Phoenix Police Department in July 2014.
That same year a Washington state claims manager requested surveillance to check on Gruden and his injuries. Court documents don’t say what became of the surveillance or how Gruden’s employment went undetected.
Last year, a claims manager requested additional surveillance to determine if Gruden was limping or having difficulty walking or running as he was claiming, Abe said. The manager also wanted to know if Gruden was following a doctor’s recommendations to use supportive shoes and to avoid walking barefoot or wearing sandals, she said.
The additional surveillance revealed that Gruden allegedly was making regular afternoon trips to the Phoenix Police Department’s property management bureau. The state launched an investigation into his work history, Abe said.
The investigation turned up his three different jobs. Gruden received 89 payments totaling $100,544.65 from the state during that time, a L&I investigator wrote.
Gruden’s claim was closed in February following the investigation. He didn’t respond to requests to contact the department and didn’t call after the claim was closed.
In a separate case, last week, a Snohomish County woman pleaded guilty to second-degree theft and was sentenced to 20 days in jail for stealing more than $16,000 in worker’s benefits.
Marlo Johnston started receiving worker’s compensation after hurting her hand at a Bellevue salon and spa in 2007. A state investigation revealed that Johnston was working at an Edmonds spa while she was collecting wage-replacement checks.
A judge agreed to allow Johnston to do 160 hours of community service in lieu of jail time. Johnston will be back in court in February when a judge will determine how much she must repay the state.
Diana Hefley: 425-339-3463; hefley@heraldnet.com.
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