Texas Unemployment Insurance Fraud 3

A number of successful prosecutions have been reported in Texas unemployment insurance fraud, totaling almost $1.16 million. According to the Texas Workforce Commission, or TWC, criminal prosecutions for unemployment insurance fraud are pursued aggressively. This resulted in 411 convictions for fraudulent claims in 2006.

The prosecutions for Texas unemployment insurance fraud range across the state, from El Paso to Austin and Corpus Christi to the panhandle. In Brazoria County, a woman received a 4-year sentence on a felony theft charge for unemployment fraud. She was also ordered to repay $4,776, plus court costs.

The TWC’s enforcement division doesn’t stop at enforcing the laws against Texas unemployment insurance fraud, either. They also enforce the laws regarding waste and abuse. The division has made fraud, abuse and theft prevention, detection and elimination a top priority for 2007. They vigorously enforce all the applicable laws, making sure that anyone who claims unemployment insurance in Texas is legally entitled to it.

TWC administers unemployment benefits to workers who become unemployed through no fault of their own. In order to qualify, a worker must be actively seeking work. Through TWC’s Fraud Detection Department, a section of the Program Integrity Division, TWC regularly cross checks UI claims with employer wage reports and other databases to detect unemployment insurance fraud.

Examples of UI fraud include giving false information and failure to report self-employment or other earnings while receiving unemployment benefits. When TWC discovers that claimants have received unemployment benefits through fraudulent applications, the agency seeks immediate reimbursement of overpayments.

Once fraud is detected, criminal charges, including felony charges are pursued with the appropriate state district attorney’s office. Conviction on a charge of unemployment insurance fraud often results in incarceration and almost always includes restitution. In addition, convicted offenders must pay court costs and fines, often greatly increasing the amount due. They usually must also perform community service as a part of their sentence.