A former accountant for the state Employment Development Department (EDD) has been sentenced in connection with a $90,000 unemployment insurance fraud case, according to an article by The Sacramento Bee.
The scheme was fairly simple when you look at it after the fact. The article cites the grand jury indictment, which noted the ex-state employee “took legitimate EDD wage data filed by workers whose employer had recently gone out of business” and provided it to two Sacramento men. The men, who never worked for the defunct businesses, then used the data to file claims for unemployment compensation. (Bet they never expected to be caught.) The ex-state worker pleaded guilty to a charge of conspiracy to commit mail fraud and was sentenced to 21 months in jail, plus three years of supervised release. And the two Sacramento men? One has been sentenced to 21 months in jail, while the other is awaiting sentencing.