An ongoing investigation by the Missouri Labor Department resulted in 41 individuals pleading guilty to charges for fraudulently receiving unemployment insurance benefits. These persons were charged with stealing by deceit and have been ordered to pay over $190,000 in restitution.   Routine audits revealed that these 41 ineligible persons gave false information on their weekly applications for unemployment benefits which caused benefits to be paid improperly.

This type of fraud constitutes a class C felony, which can carry a sentence of up to seven years in prison, or if the sentence is suspended, can result in five years of probation and an order to pay restitution. The individual restitution amounts in these cases range from $1,000 to $11,000. So far this year, the Department of Labor has collected over $500,000 in restitution from cases that have been disposed in previous years. The Department is looking at ways to increase its ability to further reduce fraud, including denying future benefits to those who commit fraud. Believe it or not, Missouri law currently allows those found guilty of fraud to collect unemployment benefits despite having outstanding penalties. Over the past few years, these penalties have totaled more than $11 million.

Missouri Labor Department Division of Employment Security Director Larry Rebman says, “This Department, along with the administration, is committed to making sure this money gets into the right hands while at the same time aggressively pursuing those who attempt to cheat the system.” For more on the Missouri Department of Labor, visit www.labor.mo.gov.