This Day On The Street
Continue to site
ADVERTISEMENT
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

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs