West Seattle man pleads guilty to first-degree theft in insurance fraud case

Edward Charles Bailey, 59, of West Seattle, has pleaded guilty in King County Superior Court to first degree theft for committing insurance fraud.


Bailey, who reported an on-the-job back injury to his employer in 2006, was placed on temporary total disability and received disability pay from his employer’s insurer, Alaska National Insurance. Doctors subsequently ruled him unable to return to work.

Five weeks after the injury, investigators working for the insurance company videotaped Bailey working vigorously on his sailboat at a Seattle marina. The sanding, painting, climbing and moving of machinery were all contrary to the physical restrictions imposed by Bailey’s doctors, according to the Washington insurance commissioner’s Special Investigations Unit.

When shown the video, the independent medical examination doctors who had originally seen Mr. Bailey reversed their original opinion as to his ability to work.

According to the charges, Bailey was paid more than $26,000 in unnecessary medical expenses and disability benefits that he wasn’t entitled to.

Bailey's sentencing is slated for early next month.