33 arrested in unemployment insurance fraud sting

[AlphaCentauri]

Source: Channel 9 news

ALBANY, N.Y. -- "If you're thinking committing unemployment insurance fraud, we will catch you," said Department of Labor Commissioner Patricia Smith.
And if you think she's kidding, Smith said ask the 33 people from the Capital Region and North Country who are facing fraud charges. Smith said they ripped the state off for more than $100,000.

"You won’t just pay restitution. If you are willfully collecting unemployment when you shouldn't be, you will be punished," said Smith.

This is the department's first upstate stop on its statewide tour touting its crackdown on unemployment cheats. Smith said since January, the department has recovered more than $14 million. Smith said most of the people charged were collecting an extra $300 to $350 a week while working another job and said they caught most of the people by just following the files.


"Employers are required to report new hires to the Department of Tax, the name and Social Security of new hires. So what we do is cross check both and if we get a hit on that we know that this is a problem," said Smith.




Read more: http://capitalnews9.com/content/top_stories/120446/33-arrested-in-unemployment-insurance-fraud-sting/Default.aspx

[Indenturedebtor]

1. I hope they punish the hell out of these people

Those unemployment funds run out in times like these. For people to be milking them like that is unconscionable.

[WriteDown]

2. Kind of like....

praying on the homeless. What type of lowlife tries to scam an unemployment office. I sometimes wonder if civilization has made any progress.

[Kweli4Real]

3. Not to excuse the theft, but ...

This is just a sign of the times. Those indicted had been dislocated from one job, collected unemployment and found another job. I'm wondering if the income of a job serving coffee or fries makes up for the income of a job building cars or homes?

And, BTW, unemployment funds don't run out because of this type of fraud.

[Indenturedebtor]

4. Even though I might be able to understand why they would want to steal

And I do want those conditions to change - taking advantage of a system like this is not ok.

They run out for all sorts of reasons - stealing money from the fund is one of them.

[RaleighNCDUer]

5. I see what you're saying. A guy loses his 50k/yr job and collects

unemployment, but the unemployment doesn't cover the bills and debts and mortgage so he picks up a job stocking shelves for 15k/yr to supplement, with no intention that it be his new career.

As far as the government is concerned, he's employed again. And he is screwed.

ON EDIT: Looking at the article it would appear that the cases run to between 1500 - 3000 dollars each. How many of them might be for persons who started work on the 1st, don't get paid until the 30th, but needed money during that month, so collected the weekly unemployment checks until the first paycheck arrived?

[snooper2]

6. Not to excuse theft, but you just made an excuse for theft..

:rofl:




GOBAMA!

[Cronus Protagonist]

7. You're only getting back money you paid into it

Last time I was on unemployment, it was made clear to me that they were just giving you back the money you paid into it in the last year. In other words, if you don't claim it, the government keeps it and if you do, you're just getting something out of your own piggy bank. The extent to which you have not worked in the past year, "benefits" are cut.

While it is illegal and dishonest, this is a victimless crime.

[Hugin]

8. Wow! More than $100,000 dollars!

Just wait 'till they get their hands on the $400,000,000+ fraudsters! I bet the sparks will really fly then! :eyes:

[RaleighNCDUer]

9. that's 33 cases totalling $100,000. According to the article they run

between $1500 and $3000 per case, mostly.

Meanwhile, we bail out Bear Stearns, Fannie Mae, Freddie Mac...