Unemployment Fraud Scheme Revealed

By on

From CNN Money

According to federal prosecutors, the conspiracy centered around a family claiming to operate several farm labor companies in Northern California. They sold fake pay stubs to other people in the community and used their companies to report false wages to the government. Then the fake employees claimed they were laid off and used the phony pay stubs to collect unemployment benefits, disability insurance, or both.

The tip off? Many were earning too much, and didn’t know where they actually “worked” – the address or even the name of the business. People were “making” $15/hour picking peaches, with one 76-year-old allegedly reported making $110 per bin of prunes he graded and packed. Three more were charged yesterday.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,178 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.