Rhode Island Unemployment Insurance Fraud

Rhode Island is tough on unemployment insurance fraud.  Adelita S. Orefice, Director of the Rhode Island Department of Labor and Training, (DLT), recently announced that DLT prosecuted 26 individuals for unemployment insurance fraud in 2006, resulting in recovery of $196,517.

The 26 cases prosecuted under the Rhode Island unemployment insurance fraud laws include 4 cases where more than $10,000 was recovered from each. Director Orefice noted that individuals who fraudulently collect unemployment insurance benefits would be aggressively pursued for criminal charges.

As of today, there are currently 59 cases of alleged Rhode Island unemployment insurance fraud pending final disposition from the court system, involving a total of $416,184. Director Orefice emphasized, “Prevention, detection, and elimination of fraud and abuse in the UI program are one of our top priorities. We want to ensure that eligible individuals receive unemployment benefits-we don’t want fraud and theft to eat away at this important safety net.”

Unemployment insurance (UI) compensates clients who are unemployed through no fault of their own and are actively seeking work. Raymond Filippone, Assistant Director for Income Support, confirmed, “If DLT discovers that claimants have received UI benefits through fraudulent means, we require immediate reimbursement of overpayments in order for those claimants to avoid criminal prosecution and conviction.”

Unemployment Insurance fraud is a serious crime that can result in a criminal record. DLT may seek penalties under the laws, which can include a felony charge for each offense. Conviction may result in incarceration and/or restitution, and may bring the additional charges of court costs and fines along with community service. Examples of fraud include giving false information, and failing to report earnings from self-employment or other work performed while collecting UI benefits.

The majority of this year’s cases under the Rhode Island unemployment insurance fraud laws involved individuals who collected unemployment while working. Most of the cases involved overpayments of $3,000 to $9,000, plus court costs.

Maintaining the integrity of Rhode Island’s Unemployment Insurance program is a key priority for the UI Administration,” reiterated Filippone. “We take a strong stand against anyone who tries to defraud the UI system. It is critical that we protect the integrity of the UI program in Rhode Island to ensure it remains financially secure and the funds are available to help those who are legitimately entitled to Unemployment Insurance benefits.”