Fraud Hurts Everyone

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Committing unemployment fraud is a crime and it hurts everyone. (It drives up taxes for businesses and law-abiding taxpayers, while preventing those who really deserve the financial aid from getting it.) An article posted on WBIW.com details the State of Indiana’s recent success in preventing two fraudsters in separate cases from stealing unearned unemployment benefits.

In one case, the defendant worked at a company that produced components and systems for the automobile industry, while collecting unemployment benefits over a two-year period. (She received more than $16,000 in undeserved benefits while gainfully employed.)

In a separate case, a man worked for a masonry company while filing for and receiving unemployment benefits for approximately two-and-a-half years. (His benefits also amounted to more than $16,000.)

The 31-year-old woman and the 42-year old man both pleaded guilty to welfare fraud. The Indiana Department of Workforce Development determined that with penalties, the woman owes the state $22,654.25 and the man owes $24,542.

These amounts may seem small, but in the grand scheme of things, it all adds up to a lot of stolen benefits. Although the article does not mention specific sentencing guidelines, it’s pretty likely that they will have to pay back the undeserved benefits to the state. (Let’s hope they get the message that fraud hurts everyone involved, including the ones who were responsible for the scam in the first place.)

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Two Plead Guilty to Welfare Fraud,” posted on WBIW.com on March 9, 2015.

(SEYMOUR) – Two Seymour residents pleaded guilty to welfare fraud Thursday in separate cases involving their collection of thousands of dollars in unemployment benefits while they held jobs.

Both 31-year-old Casey N. McCoy and 41-year-old Billy Eugene Douglas entered those pleas to the Class C felony charge in Jackson Circuit Court in Brownstown.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.