Major Unemployment Fraud Ring Busted in New Jersey

In a major offensive against unemployment fraud, New Jersey’s Attorney General Matthew J. Platkin, in collaboration with the Division of Criminal Justice (DCJ) and the U.S. Department of Labor’s Office of Inspector General, has announced charges against 20 individuals implicated in defrauding the state’s unemployment insurance system. This coordinated investigation, stretching over months, has exposed schemes that collectively diverted more than $1.1 million from funds intended to support the unemployed.

The fraudulent activities uncovered include false claims for state and federal unemployment benefits, with some individuals engaging in identity theft to illegitimately access benefits. The sums fraudulently claimed by the defendants range between $13,000 and nearly $100,000, highlighting the significant impact on the financial resources designed to aid those genuinely in need during periods of unemployment.

This crackdown represents a crucial step in addressing economic crimes and safeguarding the unemployment insurance trust fund against exploitation. The Attorney General emphasized the importance of maintaining the integrity of support programs and protecting taxpayer money from fraudulent activities.

The charges filed span across degrees of theft by deception, with three individuals facing second-degree charges and seventeen charged with third-degree theft by deception. Additionally, charges of identity theft and tampering with public records have been levied against two defendants, underlining the seriousness and complexity of the fraud.

The accused individuals are from 10 different counties, indicating the widespread nature of the fraud across New Jersey. This operation underscores the state’s commitment to rigorous enforcement and the protection of vital unemployment benefits.