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Shelton oyster harvester must repay state $32,000 after faking injury

A Shelton man claiming to be too disabled to work must repay the state thousands of dollars after being caught on camera working for his wife's shellfish company.
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A Shelton man caught on camera harvesting and selling oysters while claiming he was too disabled to work has been ordered to repay thousands of dollars to the state. 

Jose Cruz Contreras Alvarez pleaded guilty Friday to one count of second-degree theft and was ordered to pay back $32,628, a total of eight months wages, to the Washington State Department of Labor and Industries (L&I).

L&I started investigating Alvarez in 2017 after getting a tip he was working for his wife's shellfish company. He was receiving workers' compensation benefits at the time for a back injury he suffered in 2012. 

During an interview with investigators in 2017, Alvarez denied doing the work, saying he was too injured to do so. However, over the course of the investigation L&I caught Alvarez on camera loading bags of oysters into commercial trucks seven times. 

Witnesses also reported Alvarez had worked for his wife's oyster operation since 2016, doing everything from seeding the waterfront with oyster larvae to harvesting and bagging shellfish, officials said. 

In addition to repaying the wages, Alvarez was also sentenced to two years probation and two months in jail. However, the judge agreed to let him serve the jail time at home with an electronic monitor.

 If you suspect someone is cheating the workers’ comp system, contact L&I at Lni.wa.gov/fraud or call 1-888-811-5974.

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