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May 7, 2004
More Than $65,400 Allegedly Bilked From Unemployment Program |
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TRENTON – Attorney General Peter C. Harvey announced that the Division of Criminal Justice - Financial Crimes Bureau has charged two New Jersey state employees, along with six other New Jersey residents, with illegally collecting more than $65,400 in Unemployment Insurance (UI) and/or Temporary Disability Insurance (TDI) benefits to which they were not entitled. According
to Vaughn L. McKoy, Director, Division of Criminal Justice, the Financial
Crimes Bureau obtained separate State Grand Jury indictments which charge
eight individuals with theft by deception and unsworn falsification to
authorities. Each of the indictments allege that the defendants either
filed false claims for unemployment or disability insurance, or continued
to collect UI after returning to employment. The amounts fraudulently
collected range from $5,500 to more than $13,000. “The Department of Labor uses a variety of methods to track down those who abuse the system and fraudulently obtain benefits," said Unemployment Insurance Director David Socolow. "These cases were first identified by DOL investigators by investigating the cross-match of employer-submitted wage information against UI benefit payments; pursuing leads from employer protests of UI benefit charges; surveying employer payroll records; and responding to alerts from the staff of our local claims offices." The Division of Criminal Justice - Financial Crimes Bureau obtained an indictment charging Patricia Mitchell, 39, Ivy Street, Newark, Essex County, with theft by deception and unsworn falsification to authorities. It is alleged that Mitchell filed for UI benefits in August, 2000. Two months later, Mitchell began employment at Greystone Psychiatric Hospital in Morris County. It is charged that Mitchell failed to report earnings to the Department of Labor, thereby receiving $7,072 in UI benefits to which she was not entitled. A separate
State Grand Jury indictment charged Lashawn Peterson, 32, Logan Ave.,
Trenton, Mercer County, with theft by deception and unsworn falsification
to authorities. It is charged that Peterson filed a claim for UI benefits
in May, 2000. An investigation determined that in June, 2000, Peterson
began working at the New Jersey Department of Corrections as a communications
operator and failed to report the employment to the Department of Labor.
From June through November, 2000, Peterson collected $7,360 in UI benefits
to which she was not entitled. State v. Fransisco “Frank” Garcia, 43, Third Street, Union City, Hudson County, was charged with two counts of theft by deception and unsworn falsification to authorities. Garcia worked as a truck driver for Ruether Trucking Corp. in North Bergen, Hudson County, since 1994. Due to the seasonal nature of the work, Garcia was periodically furloughed from the position. In November, 1999 and December, 2000, Garcia was furloughed and immediately rehired. Garcia filed his first claim for UI benefits in December, 1999 and collected on the claim until May, 2000. He filed a second claim in September, 2000 and collected on the claim until February, 2001. Both times, Garcia failed to report the earnings to the DOL. It is charged that Garcia received $13,088 in illegal benefits. State v. Augusto Perez, 43, Route 47, Leesburg, Cumberland County, was charged with two counts of theft by deception and unsworn falsification to authorities. Perez filed for UI benefits twice -- the first time in May, 1998 and again in June, 1999. From December, 1998 to August, 1999, Perez worked at Liz Claiborne in North Bergen, Bergen County. It is charged that Perez received $7,278 in benefits to which he was not entitled. State v. Debra Gorman, 39, Dey Street, Paterson, Passaic County, was charged with theft by deception and unsworn falsification to authorities. It is alleged that Gorman filed for UI benefits when she was terminated from her position as a registered nurse at Bayonne Hospital in January, 1999. An investigation by the Division of Criminal Justice determined that Gorman failed to notify DOL that she was earning per diem wages as a registered nurse at Greenville Hospital in Hudson County from 1993 through 1999. Between March and August, 199, Gorman allegedly collected $9,355 in UI benefits to which she was not entitled. State v. Albert Smith, 31, Muhammad Ali Avenue, Newark, was charged with theft by deception and unsworn falsification to authorities. It is charged that Smith filed for UI benefits in February, 2000. An investigation by the Division of Criminal Justice revealed that Smith began working the next month for Guest Supply, Inc., located in Monmouth Junction, Monmouth County, while collecting UI benefits until August. The indictment alleges that Smith fraudulently collected $8,580 in UI benefits. State v. Jonah Williams, 33, Brill Street, Newark, was charged with theft by deception and one count of unsworn falsification to authorities. The indictment alleges Williams filed for UI benefits in October 1998. The next month, Williams began working at Price, Waterhouse, Coopers in Passaic County, and failed to report the employment to the DOL. It is charged that Williams received $7,175 in illegal benefits. State v. Gail Laura, 50, 1st Avenue, Belmar, Monmouth County, was charged with theft by deception and unsworn falsification to authorities. It is charged that Laura began collecting UI benefits in March, 1999. In June of that year, Laura began working as a legal secretary at a law office in Asbury Park, Monmouth County. The investigation determined that Laura failed to report earnings to the DOL and subsequently obtained $5,534 in benefits to which she was not entitled. In announcing the indictments, Director McKoy noted that the Division of Criminal Justice has established a toll-free “Crime Tipline” for the public to report corruption, financial crime and other illegal activities. The statewide “Crime TipLine” is: 1-866-TIPS-4CJ. Additionally, the public can log on to the Division of Criminal Justice Web Page at www.njdcj.org to electronically report suspected wrongdoing. Any information received via the Division of Criminal Justice “Crime Tipline” remains confidential. Theft by deception is a third degree crime which carries a maximum penalty of up to five years in state prison and a fine of up to $15,000. Unsworn falsification to authorities is a fourth degree crime which carries a maximum penalty of up to 18 months in state prison and a fine of up to $10,000. Deputy Attorney
General Candy Cure presented the Mitchell, Peterson, Perez, Smith, Williams
and Laura cases to the State Grand Jury. Deputy Attorney General Denise
Grugan presented the Garcia and Gorman cases to the State Grand Jury.
DAG Cure and Grugan are assigned to the Division of Criminal Justice -
Financial Crimes Bureau. State Investigators Gary O’Brien and Lynn
Fitzgerald conducted the investigations. An indictment
is merely an accusation. The defendants are presumed innocent until proven
guilty in a court of law. # # # |