Unemployment Fraud Scheme Revealed

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21 people have charged in this $5 million plot which involved fake employers and more than 400 "employees."

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.

Stacy Johnson

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