In his claim, John Smiley, 44, stated that a recent parolee recognized him while he was exiting a restaurant in April 2008. The ex-convict allegedly opened fire on the officer, paralyzing him from the waist down.
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The gunman remains at large.
Smiley and his wife, who now face five felony counts of conspiracy to commit fraud, recently appeared in court for their arraignment.
The Sacramento District Attorney's Office claims that the State Compensation Insurance Fund (SCIF) has saved a lot of money by catching the fraudulent activity.
"The approximate grand total expense for SCIF would have been $2,442,142.00," an SCIF investigative report says. "However, SCIF has spent $6,500.00 in investigative cost."