Published: 05-29-08
TWC Assists U.S. Attorney in UI Fraud Convictions
AUSTIN – The Texas Workforce Commission (TWC) assisted the U.S. Attorney’s Office the U.S. Department of Labor – Office of Inspector General and the U.S. Postal Inspection Service to prosecute three individuals involved in a scheme to fraudulently collect Unemployment Insurance (UI) benefits. One individual was sentenced to more than five years in prison and two others received lesser sentences.
“This case is a clear example of how TWC pursues criminal prosecutions aggressively” said TWC Executive Director Larry Temple. “This success is the result of agency wide systems implemented by our UI Tax and Regulatory Integrity Divisions to detect fraud.”
Those prosecuted include:
• Warren D. McDonald of Dimmitt the lead defendant received a sentence of 65 months in prison. He pled guilty to conspiracy to possess stolen mail matter and aggravated identity theft and was ordered to pay $15700 restitution.
• Barbara Glover-Williams of Amarillo received a sentence of six months in prison and 36 months supervised release. She pled guilty to mail fraud and aiding and abetting and was ordered to pay $3850 restitution.
• Christopher Hughes of Amarillo received a sentence of seven months in prison. He pled guilty to mail fraud and aiding and abetting and was ordered to pay $4900 in restitution.
TWC’s Regulatory Integrity Division is charged with detecting and preventing fraud waste and abuse. The division enforces all regulatory statutes within the jurisdiction of the agency including Tax Workforce Trade Act Skills Development Self-Sufficiency Child Care and all other programs TWC administers. Prevention detection and elimination of fraud and abuse in the UI program are top priorities ensuring that funds are available exclusively to those who meet the eligibility requirements.
TWC administers UI benefits to workers who become unemployed through no fault of their own and are actively seeking work. Through its Fraud Detection Unit located within the Regulatory Integrity Division TWC regularly cross matches UI claims with employer wage reports and other databases to detect possible UI fraud. When TWC discovers that claimants have received UI benefits through fraudulent applications the agency seeks immediate reimbursement of overpayments. Examples of UI fraud include giving false information and failure to report self-employment or other earnings while receiving UI benefits.
Once fraud is detected criminal charges including felony charges if supported by the facts are pursued with the appropriate state district attorney offices. Conviction may result in incarceration and/or restitution and may invoke additional charges for court costs and fines and require community service. All recovered funds are returned to the Texas Unemployment Compensation Trust Fund. For monthly updates on fraud convictions see TWC’s Web site at http://www.twc.state.tx.us/ui/bnfts/prosecutiondispo.html.
