Thread: N.Y. Unemployment fraud crackdown leads to 25 arrests

Rockland unemployment fraud crackdown leads to 25 arrests

Steve Lieberman, slieberm@lohud.com7:08 p.m. EDT October 30, 2015

The investigation is continuing, authorities said.



(Photo: John Meore/The Journal News)


NEW CITY More than two dozen people lived in the Dominican Republic most of the time but collected state unemployment payments topping $160,000 without looking for work, authorities said Thursday in announcing their arrests.

The five-year skimming ended with arrests Wednesday night across Rockland. The 25 charged have ties to Haverstraw and all face felony fraud charges.

Those charged used others to file for New York state unemployment benefits on their behalf or filed for benefits for other people, authorities said.They applied over the Internet or by telephone and were not reviewed in person, authorities said.

Rockland District Attorney Thomas Zugibe was among those who announced the arrests Thursday, surrounded by federal, state and local law enforcement partners who took part in the investigation.

The 25 people were arrested during a sweep Wednesday night and each face felony charges of grand larceny, which is punishable for up to seven years in prison.

Zugibe said so-called "safety net" programs are often targets for fraud, from unemployment and welfare to child care subsidies.

"Every time we start investigating these programs, we find corruption," he said.

Ramon Delacruz, 37, of 41 Rela Ave., Haverstraw, was allegedly one of the bigger recipients of illegal payments.

He was arrested in March for ripping off $100,000 in benefits, Zugibe said.

In the new indictment he is accused of using the Internet and telephone, while living in the Dominician Republic, to apply for and get unemployment payments for 10 of the 25 people arrested. A search of Delacruz's Haverstraw residence uncovered multiple debit cards in the names of other individuals who illegally got payments, Zugibe said.

Authorities found more than $10,000 in cash and seized a computer from the home, Zugibe said.

The 25 people are accused of stealing anywhere from $1,400 to $22,179 apiece. For example, Santiago Liz, 47, of Pomona is accused of stealing $22,179 between January 2011 and March 2015. Juana Martinez Rodriguez. 58, of Haverstraw stole $16,785 from December 2010 and March 2015.

The U.S. Immigration and Customs Enforcement Homeland Security Investigations took part in the investigation and arrests along with the District Attorney's Office, state Labor Department and Rockland Sheriff's Office.

Robert Pearlroth, senior investigator for the Labor Department, said the department uncovered suspicious activity by checking data for "abnormalities." For example, Pearlroth, said, red flags might include many people receiving benefits living at the same address or using the same bank account.

County Executive Ed Day said one way to battle this type of fraud is to ensure that all online applications for these programs originate from an IP address within New York state.

"When government resources are scarce and needs high, we must be especially vigilant to root out and punish cheating," Day said. "These arrests further highlight the critical need to safeguard taxpayer dollars and ensure the integrity of essential public benefit programs."

http://www.lohud.com/story/news/crim...land/74793364/

These kinds of things are bottomless wells of burden to the taxpayer. Money is going out of the country, yet citizens will pay for the investigation, prosecution and incarceration probably. Employment departments are supposed to try to recover the money. It is well known in the employment world that UE funds are pillaged all the time.

New York state provided Medicaid for the dead, audit shows


New York State Comptroller Thomas DiNapoli speaks during a news conference in Albany, N.Y. (Mike Groll | The Associated Press)

By The Associated Press
on October 29, 2015 at 11:24 AM, updated October 29, 2015 at 11:25 AM

ALBANY, N.Y. (AP) — Auditors say flaws in the eligibility process in the state health exchange resulted in New York enrolling 21 dead people for Medicaid while continuing government-funded health coverage for 333 others who had died.

The state comptroller's office says its auditors found overpayments of $3.4 million for the year starting Oct. 1, 2013.
That includes $325,000 for the deceased.

Auditors say the Department of Health also issued multiple identification numbers to some recipients, resulting in Medicaid overpayments of $2.8 million.

Medicaid covers about 6 million New Yorkers and costs $60 million annually.

The Health Department says it's been awaiting a new federal system to verify deaths. It confirmed 321 people cited in the audit were dead, four are still alive and it's checking the other 29.

The department notes state enforcement efforts in 2011-2012 recovered $1.73 billion.

http://www.syracuse.com/state/index....dit_shows.html