Unemployment insurance fraud payments given to NY counties

May 1, 2013

Unemployment insurance fraud payments given to NY counties

During the recession, many nonprofit and government organizations were faced with the need to let staff members go to make ends meet financially. As the economy picks up, these entities are regaining their footing, and many are looking to make wiser choices when it comes to paying off costs associated with unemployment requirements, such as fees associated with taxes.

Something these organizations should be aware of is the high prevalence of insurance fraud, which recently proved to be a major problem for several counties in New York.

Last year, the New York Department of Labor worked with the state district attorney's offices to prosecute phony unemployment insurance claims and returned nearly $2 million to the unemployment insurance trust fund.

Counties throughout New York received major unemployment insurance fraud returns this week. Orange County saw the largest amount, as it was given roughly $178,000. Queens County saw the second largest payout, worth almost $153,600, and Monroe County came in third with a little more than $134,700, according to Rochester Business Journal.

Governor Andrew Cuomo called unemployment insurance fraud an necessary cost-driver for honest employers that puts the benefits of legitimate claim-filers at risk.

"Such criminal activity should be prosecuted to the fullest extent of the law, and I applaud our local partners who pursue these cases for their vital help in returning these stolen funds back to the Unemployment Insurance Trust Fund," Cuomo said.

Monroe County District Attorney Sandra Doorley added that these cases often get overlooked in a world where violent crime receives most of the media attention. 

Fraudulent unemployment insurance claims are a major burden on local governments involved. While the New York counties received payment returns, these crimes are time- and resource-consuming for organization leadership.

Working with an insurance provider that can tailor to an entity's specific needs can help nonprofit managers rest easy.


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