Missouri Unemployment Fraud

Seventeen people in Missouri were recently convicted of unemployment insurance fraud totaling almost $80,000. The Missouri Dept. of Labor and Industrial Relations announced on January 18 that it has secured convictions against all 17 people, and filed charges against 13 more.

Under the law, anyone who works and doesn’t report the income is guilty of Missouri unemployment fraud.  Some of the criminals in these cases earned up to $120,000 per year, while claiming unemployment benefits at public expense.

In one case, a Texas County, Missouri man claimed unemployment even though he was operating a successful eBay business generating more than $250,000 in revenue over the year. The man’s take home earnings, after taxes, were in excess of $120,000. He collected more than $10,421 in unemployment compensation during the same period. Prosecutors note that the man used the money primarily to purchase pornography, and to take a trip to Thailand.

Others charged and convicted include a grandmother from Franklin County and a childcare provider from Clay County.

Under the law, anyone who works while collecting unemployment benefits must report the wages earned. According to prosecutors, too many people believe that if they work “under the table” or are paid in cash, their earnings don’t count. Legally, this is simply not true.

Prosecutors used a number of resources including tax returns and bank statements to track down violators who had substantial earnings in excess of what was reported on their unemployment claims.

The Division of Employment Security aggressively pursues criminal prosecution of individuals who commit Missouri unemployment fraud.  Fraudulent unemployment insurance benefit claims are those any funds collected by individuals who do not qualify for benefits. According to prosecutors, such claims raise employer taxes and reduce the fund that is used for paying benefits.

Under Missouri law, workers who are unemployed through no fault of their own and are actively seeking work are eligible to receive up to 26 weeks of unemployment insurance benefits. Workers must also have worked in covered employment and earned sufficient qualifying wages to be entitled to any unemployment insurance benefits.