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Four busted for unemployment fraud

Hudson-Catskill Newspapers

ALBANY — The New York State Department of labor continues to crackdown on unemployment insurance fraud. State Labor Commissioner M. Patricia Smith announced Monday that 33 residents of the Capitol Region and North Country have been arrested and charged with defrauding the unemployment insurance program of more than $116,000.

Statewide, cases totaling almost $1 million are being referred for prosecution by the Department of Labor.

Four Columbia County residents and a Greene County man are in various stages of prosecution for allegedly collecting unemployment insurance while holding down jobs.

Mark Faber of Mellenville stands accused of defrauding the program of more than $3,400. Pyka Hughes of Valatie allegedly received a little more than $2,600 she didn’t deserve; Kevin Drake of Hudson, $3,290 and Jessica Handschuh of Ancramdale, $3,990.

In Greene County James Moore of Catskill stands accused of defrauding the program of more than $14,000.

David Costanzo, Columbia County Senior Assistant District Attorney, said that all four Columbia County residents have been charged with fraud.

“Hughes and Drake have been indicted, the other two are in pre-indictment stages,” he said.

The arrests were made by state police over the course of many months.

The unemployment insurance program is federally funded and administered by the state Labor Department. The weekly payments given through the program are meant to assist eligible workers who have lost their jobs through no fault of their own.

According to the Department of Labor this type of fraud impacts businesses through higher rates for employers who pay the fraudulent claims. The program pays out more than $2 billion in unemployment benefits each year, with 600 cases resulting in arrest and prosecution for fraud.

“Unemployment Insurance is a lifeline that keeps thousands of families afloat across New York State during difficult times,” Smith said in a statement. “As New Yorkers continue to reel from the effects of a nationwide downturn in the economy, it is nothing short of shameful to think that people would steal from a fund designed to help families put food on the table, gas in their cars and clothes on the backs of their children.”

Leo Rosales, a Department of Labor spokesperson, said his department worked with the region’s district attorneys on the cases. He said the Labor Department utilized two lists, one of people receiving benefits through the program and one with the names of all new hires, provided by employers across the state.

“We cross check the lists,” he said. “If your name appears on both lists, you’re committing unemployment insurance fraud.”

According to Rosales the Department of Labor gives this information to local district attorneys who are then responsible for prosecuting the offenders.

Costanzo agreed, saying it was a “joint effort” between the Department of Labor and the District Attorney’s Office.

Beth Cozzolino, Columbia County District Attorney Beth Cozzolino in a statement said these four cases demonstrated “the value of collaboration between agencies.”

“I want to thank Commissioner Smith and the Department of Labor for their work investigating these serious crimes, and for reaching out to law enforcement and prosecutors to insure that justice is served. In doing so, those who take this money are held accountable,” she said.

Since January of this year more than $14 million in fraudulent payments have been returned to the unemployment fund through Labor Department investigations, in conjunction with local law enforcement.

To reach reporter Andrew Amelinckx please call 518-828-1616 or e-mail aamelinckx@registerstar.com.

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