Unemployment Benefits Fraud Leads to Indictments

Unemployment Benefits Fraud Leads to Indictments

Unemployment benefits have been a life saver for those who have found it difficult to land a job in a sluggish job market. For most receivers, they have used their time wisely in looking for a job as required by the government to receive benefits. Unemployment compensation is meant to act as bridge, until a new job can be found, but unfortunately some people receiving benefits have abused the system.

Attorney General Lisa Madigan and the Illinois of Employment Security (IDES) announced indictments of 14 Chicago area defendants, alleging they defrauded the state when they knowingly collected more the $400,000 in unemployment benefits, even though they were employed!

I have heard some people who are collecting unemployment benefits falsify their company contacts, but to collect unemployment benefits after you land a job is beyond reproach. It is detrimental to the entire process of the unemployment benefit system and threatens benefits for those who are working hard to find a job. Stealing money for those who play by the rules hurts our economy and can not be tolerated.

Charges are filed against these people who abused the system as theft, a Class 1 felony punishable by four to fifteen years in prison and state benefits fraud and wire fraud, of which is a Class 3 felony punishable by two to five years in prison, against the 14 defendants.

In each case, the defendant falsely verified they were unemployed through the IDES telephone or on-line verification system to access taxpayer-funded assisted during their suspended unemployment when, in fact, they were employed and should have not received any unemployment benefits. Fraudulent claims made by the defendants spanned from 2009 through 2011 with some collecting more than $40,000 in fraudulent unemployment benefits.

It is imperative that you alert the IDES when you find a job. Failure to do so could land you in jail.


Leave a comment
  • Cheating.....that is part of the American life. Kids cheat playing in games. People cheated in school, cheated on their exams, cheated on their spouses, cheated on their taxes. Sports athletes cheat with PEDS to get better numbers and enhance their performance. Business owners cheat their customers, Employers cheat their employees, Preisdent Clinton cheated on his wife and lied to our face on National TV, and everyone on Wall St. cheat everyday.

    One of my favorite lines from a movie is where Jonathan Winters telling Sid Caesar that everyone has to pay taxes, after Caesar tells Winters and others about how they don't have to report the taxes after finding stolen money. Winters, an honest guy, tells the fortune hunters that "everyone has to pay taxes...even business men who lie, cheat and steal everyday has to pay taxes".

    $400,000 is allot of money. But think of all the Billions that Wall St. Bankers stole and got away with. Or all the Billions waste the govt. does with our taxpayers money on silly projects and govt programs.

    I am amaze how we hear prisoners behind bars collecting unemployment checks while in prison.

    Our govt cheat on employment numbers. They say it is around 7.9%. True number is much higher. Once you go off unemployment with benefits expired, quit looking or take a part time job, you are not counted anymore. Our govt. counts one lost job is equal to one new job. But I cannot believe one lost IBM white collar job that pays $90,000 a year is equal to one new cashier job at McDonald's. That is why our economy is the dumpster. We look at numbers in job gains than rather looking at what type of jobs are created.

    Funny movie that has a scene about unemployment benefits has George Segal cheating unemployment by taking a part time job in a Opera. The unemployment agent sees Segal on stage and ends Segal benefits for one year.

    Soon, many states will require unemployed people to work on community projects (free labor) to receive their unemployment checks. This takes away jobs from people who could get paid doing these projects that are funded under govt grants. So who will get that funded project money if you have free labor doing it? Another condition for unemployed people is to take drug tests. I have no problem with that, but one state will charge unemployed people if they failed their drug test. Sounds like that state is making a profit on a program that is already funded. More like taking money on both ends.

    All of these unemployment issues would not matter if we got everyone back to work, stop sending American jobs overseas, stop bringing in H1-B's to work for less wages than a American would and stop buying products made in China.

    So much work in this country that has to be done. We just need our politicians & CEO's get working together.

  • Great discussion here. I agree that this country needs a whole lot of work to get it going in the right direction. It all starts with our elected officials who have jobs that we have given them and who collect their salary, benefits and retirement no matter what happens in our economy. I would like to see them take a pay cut or have their pensions slashed or be rewarded based on performance.

Leave a comment