DA Recovered $153K In Jobless Benefit Fraud
Prosecutors in Queens were second in the entire state in recovering funds fraudulently obtained by schemers through the state’s unemployment insurance program last year, Gov. Andrew Cuomo announced on Tuesday, Apr. 30.
The governor credited partnerships between the state Department of Labor and the various State District Attorneys’ offices to prosecute unemployment insurance fraud cases in 2012, leading to the recovery of nearly $1.9 million statewide.
The Labor Department’s Office of Special Investigations investigates fraud against the state’s Unemployment Insurance Trust Fund. Last year, they referred 771 of their cases for criminal prosecution.
“Unemployment insurance fraud drives up costs for honest businesses and jeopardizes the benefits of the workers who rely on this vital safety net,” Cuomo said. “Such criminal activity should be prosecuted to the fullest extent of the law and I applaud our local partners who pursue these cases for their vital help in returning these stolen funds back to the Unemployment Insurance Trust Fund.”
In its prosecution of unemployment insurance fraud cases, Queens County prosecutors returned approximately $153,587 to the trust fund in 2012, second only to Orange County, which recovered $178,033. Monroe County was third in the state, bringing back $134,724 in fraudulent claims.
Labor Commissioner Peter M. Rivera added, “A combination of highly trained investigators, sophisticated computer systems and partnerships with top prosecutors means those who steal benefits they’re not entitled to will be caught. These are not victimless crimes and I commend everyone involved in both investigating and prosecuting the individuals.”
“In today’s tough economic climate, unemployment insurance benefits are a vital lifeline for many New Yorkers. Those who falsely apply for unemployment benefits cheat legitimately unemployed workers and increase insurance rates paid by employers,” Queens District Attorney Richard A. Brown said. “Their actions erode a vital workplace protection that was created for the benefit of all workers. I am pleased to work with Governor Cuomo and the Department of Labor in prosecuting those who defraud the state and in recovering these much needed funds.”
So far this year, Monroe County is the top ranked District Attorney’s Office with criminal defendants convicted after prosecution by the Monroe County District Attorney having paid back $92,081.
Prosecutors regularly request that the court order restitution of stolen funds to DOL after a conviction. The stolen benefits are returned to the Unemployment Insurance Trust Fund to help workers who have lost their job through no fault of their own. Returning stolen funds also prevents additional costs accruing to employers because of the trust fund’s ability to pay benefits.
The trust fund is funded by employers across New York. When the Fund is forced to pay out because of a fraudulent claim, employers have to pay more-and that means consumers will be paying more as well, Cuomo noted.
New York State operates one of the largest unemployment insurance systems in the country. In 2012, New York State paid out nearly $7.1 billion in total benefits to 1.13 million people. At the height of the recession in 2009, the state paid out $9.2 billion in unemployment insurance payments to 1.2 million people.
Last year, New York State was selected to create a single Unemployment Insurance National Integrity Center of Excellence by the United States Department of Labor and United States Office of Management and Budget. New York was awarded $15 million to run this innovation think tank entrusted with improving state unemployment insurance integrity and fraud prevention efforts and collaboration nationwide. New York is now a laboratory for innovation to identify, develop and/or pilot new strategies and tools to combat improper payment and fraud on a national level.
Anyone with information about unemployment insurance fraud should call the Department of Labor’s toll-free fraud hotline at 1-888-598-2077.
