Unemployment insurance scams often involve stolen identities and the filing of false claims. In Ohio, four Cleveland-area residents went a step farther and created fake companies as a way to file for illegal benefits.

The four perpetrators targeted five different states as a part of the scam. There, 34-year-old Juan Sanders allegedly created false companies, then used stolen identities to file claims for workers who were supposed to be a part of the fictional businesses.

The five states involved were California, Illinois, Massachusetts, Ohio, and North Carolina. Sanders was recently indicted in Ohio for the crimes, along with Trina Grant, Ashley Robinson, and Robert Barrett. The four are accused of taking the benefits acquired from the five state unemployment insurance agencies. Once the benefits were in hand, they withdrew the money from ATMs to use for their own gains.

Defendants face multiple charges
The four people involved face a variety of charges in Ohio related to the unemployment insurance scam.

“These defendants took advantage of a program designed to help people out of work and instead used it to enrich themselves,” said Steven Dettelbach, United States Attorney for the Northern District of Ohio, reported Ohio-based media outlet 19 Action News. “We will prosecute waste, fraud, and abuse of government programs.”

“UI scams can negatively impact local employers.”

The crimes took place between 2011 to early 2014. Saunders is charged with conspiracy to commit mail and wire fraud, mail fraud, aggravated identity theft, and money laundering. According to Eric Heisig, of the Northeast Ohio Media Group, Saunders has prior convictions for identity fraud, misuse of credit cards, tampering with evidence, and aggravated assault.

Unemployment insurance scams are serious problems for individual states. Places like California, Illinois, Massachusetts, Ohio, and North Carolina that have dealt with scams in the past have seen their unemployment insurance costs increase, with the burden passed down to employers. It is very important to identify these improper benefits as early as possible to prevent an increase in business taxes.

Thankfully, the scam targeting these five states has been stopped. Employers there won’t have to see an uptick in unemployment insurance costs related to these specific crimes.

Juggling tax rates and difficult employees can become challenging at your company. Here at Corporate Cost Control, we understand these problems and are well-positioned to help. Our extensive background in cost control and human resources will allow you to better manage your unemployment insurance expenses.


Contact CCC to see how we can save your organization time and money.
Contact our Sales Team
(800) 207-6926

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