Major bust in unemployment scam

wabc

By abc7NY

Tuesday, October 28, 2008

NEW YORK Police say the 126 arrests were made across the city's five boroughs over the past year. Some of the arrests were made as recently as last week.

For the first time, officials with the state department of labor used computer records to cross-check social security numbers.

According to reports they were able to catch the suspects by matching social security numbers of people collecting unemployment insurance with social security numbers on tax returns.

Investigators then probed anyone who filed taxes for income and collected unemployment insurance at the same time.

In the process, investigators reportedly uncovered countless instances of stunning unemployment fraud.

Eyewitness News is told in one case, a man used four different social security numbers to collect $27,000 of unemployment while posing as four different people -- all while he held a steady job

The state Labor commissioner and the district attorneys from all five boroughs will announce the arrest

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WEB PRODUCED BY: Lakisha Bostick

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