26 People Arrested for Unemployment FraudInsurance Fraud — By Trace America on February 3, 2012 at 3:07 PM
Some New York jails might be extra crowded after over 2 dozen people were arrested for defrauding the state out of more than $192,000 in unemployment insurance benefits.
Each person was working while claiming unemployment benefits, but police do not believe these individuals were working together.
According to WHAM News and the NY State Department of Labor, this type of crime is happening more often. In the last fours years alone, the New York State Police note that the crimes have doubled.
“We never would see $20,000, $19,000 in unemployment fraud but recently now we’re seeing them quite frequently,” said NYSP Sr. investigator Jim Newell.
“We’re getting cases in the office on a daily basis, there are just a large number, it’s a continuous process,” said Paul Turner, Senior Investigator with the State Labor Department.
Turner also stated that this type of fraud can have a negative impact on businesses. He said, “Tax rates go up when unemployment funds have to pay out unemployment insurance and also the rates increase as the funds become increasingly more insolvent.”
The Department of Labor says they are constantly looking over paperwork for these types of crimes.
Last year, Monroe County secured the most money back from unemployment fraud than any other county, over $172,000.
The 26 people were arrested by State Police and charged with grand larceny, offering false instrument for filing and falsifying business records–all felonies.
One of those charged is a repeat offender, facing unemployment multiple times; this arrest marks his 100th. Congratulations.
This post is authored by Trace America.