“TWC is constantly working on new measures to help detect, prevent, and reduce fraud and this case highlights the success of those efforts.”
Texas Insider Report: AUSTIN, Texas – A 41-year-old Edinburg man has been sentenced to 74 months in federal prison and ordered to pay $531,161 in restitution after leading a decade-long unemployment insurance (UI) scheme.
According to the United States Attorney’s Office Southern District of Texas, in August 2008, Jose Luis Gonzalez began filing fraudulent unemployment claims with the Texas Workforce Commission (TWC). Gonzalez then falsely identified himself as the employer in order to verify his own fraudulent claims. Gonzalez also advertised his scheme on social media and recruited others to join his operation.
TWC’s Office of Investigations worked cooperatively with the U.S. Department of Labor (DOL), Office of the Inspector General (OIG) Officer of Labor Racketeering and Fraud Investigations Dallas, U.S. Postal Inspectors of McAllen, Hidalgo County Sheriff’s Department, and the Hidalgo Police Department to locate and interview the suspect. The DOL and OIG conducted an undercover purchase of a UI claim from Gonzalez, whose residence was subsequently raided by agents.
“I applaud the thorough work of TWC staff and the multiple law enforcement agencies involved in bringing this case to justice,” said TWC Executive Director Ed Serna. “TWC is constantly working on new measures to help detect, prevent, and reduce fraud and this case highlights the success of those efforts.”
The scheme involved 104 UI claims for 79 unique Social Security Numbers, including seven claims Gonzalez filed for himself. Gonzalez and the nine co-conspirators have pleaded guilty and were sentenced by the U.S. District Court for the Southern District of Texas, McAllen Division.
TWC uses all tools at its disposal to identify fraudulent unemployment claims to shut them down as quickly as possible and works closely with law enforcement and prosecutors to bring offenders to justice and recover stolen funds.
