This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ind. Task Force Yields Unemployment Fraud Charges

INDIANAPOLIS (AP) â¿¿ A fraud task force formed earlier this year by a state agency and prosecutors in Indianapolis has yielded its first arrests in the new push to crack down on unemployment fraud.

The Indianapolis Star reports (http://indy.st/XlQedi ) that the joint task force between the Indiana Department of Workforce Development and Marion County prosecutors resulted in charges in nine unemployment fraud cases last month.

The new initiative is targeting Indiana residents who steal money intended for workers who have lost a job and can't find a new one. State officials estimate fraudulent unemployment claims in Indiana exceeded $13 million last year.

Such scams affect taxpayer money as well as the bottom line of businesses, which pay into the trust fund that provides benefits and often pass that expense on to their customers.

Workforce Development office spokesman Joe Frank said catching people bilking the government out of jobless benefits has become easier because most of the functions of jobless claims â¿¿ the application, screening and payment process â¿¿ are now computerized.

"We can track people a lot quicker now," he said. "Now that we have these very good tools to really track fraud, we are really trying to get these folks prosecuted and get the money back as soon as possible."

Frank said that before the system was fully automated, officials had to try to match records from a partially computerized system with paper records, "and hopefully people didn't fall through the cracks."

Last year, officials identified $13 million in fraudulent claims out of total benefit payments of about $2 billion. Figures for March show that about 85,000 Hoosiers receive unemployment benefits.

While Frank said that $13 million is a fraction of the total payout, it cannot be ignored.

He said Indiana has done a good job recovering overpayments, including fraudulent claims. In 2011 â¿¿ the most recent year for which comparable federal data are available â¿¿ Indiana recovered about 67 percent. That gave the state the nation's sixth-highest rate.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs