Michigan Workers Rack Up $100,000 in Unemployment Scam

Eleven workers in western Michigan have been found guilty of unemployment insurance fraud for collecting more than $100,000 in benefits to which they were not entitled. Twenty-nine others face strong administrative action from the state’s Unemployment Insurance Agency (UIA).

Those who were prosecuted and found guilty of defrauding the state’s UI program of $5,000 or more were:

• Sylvester Banks, Grand Rapids

• Linda Couturier, Grand Rapids

• Vera Crawford, Grand Rapids

• Desiree Howard, Grand Rapids

• Tena McAllister, Grand Rapids

• Troy Allen Perkins, Greenville

• Ellen Marie Rodriguez, Grand Rapids

• Julia Sanders, Grand Rapids

• Heidi Schmuck, Grandville

• Michael Thompson, Grand Rapids

• Angela Torres, Grand Rapids

The 11 fraudulently collected between $5,405 and $16,523 each in state jobless benefits. All have to repay the benefits they received. In addition, they face fines, court costs and community service.

The 29 other cases involved smaller amounts of money ranging from $181 to $4,433. In total, however, these workers illegally drew more than $70,000 in unemployment benefits. UIA is taking administrative action against these individuals.

“Each of these 29 individuals are required to repay the agency for the benefits they fraudulently collected,” said Sharon Bommarito of UIA.

If the agency is not compensated for the benefits and penalties, then it will begin collection efforts that could ultimately lead to liens against the personal property and tax returns of the 29 workers.

Bommarito explained that the plan to defraud the agency began after periodic layoffs at Lear that typically occur in January and July. Employees would file for unemployment benefits during the layoffs. In these cases, however, the workers continued to claim unemployment benefits after the layoffs had ended, and they were back to work.

A call to UIA’s toll free fraud hotline-(800) 822-1122-brought the plan to the attention of agency fraud investigators.

“Our investigators contacted the Lear Corporation and worked closely with them throughout the investigation,” Bommarito said. “With the full cooperation of the Kent County Prosecutor’s Office, we then sought criminal warrants against those who drew more than $5,000 in benefits.”

The agency is taking a firm stand against anyone who tries to defraud the unemployment program.

“Maintaining the integrity of Michigan’s unemployment insurance program is a key priority for UIA,” David Plawecki, a deputy director with the state’s Department of Labor & Economic Growth, said. “Anyone attempting to defraud the UI system will be subject to financial and, possibly, criminal penalties-whether they are workers or employers.”

In addition to fighting fraud among workers, the agency is focusing on employers who are paying less than their fair share of unemployment taxes through a practice known as “SUTA dumping.”

“In May, Gov. Granholm signed into law several measures that close loopholes in the state’s UI law that some employers have used to avoid paying their fair share of unemployment taxes,” Plawecki noted. “Unfortunately, some employers think it is all right to dump their tax responsibilities on the rest of Michigan’s employers. We will pursue these employers to slam the door on cheating in Michigan’s UI program.

“We must protect the integrity of the UI program to ensure that it remains fiscally sound and able to help those who are legitimately entitled to unemployment benefits,” he said.

Source: Michigan Unemployment Insurance Agency

Topics Fraud Michigan