Labor department recovers $6.4M in 2010 unemployment fraud

The Missouri Labor Department recovered $6.4 million during 2010 from people who received unemployment benefits for which they were not entitled, according to a Jan. 28 news release.

Of the total, $1.1 million was recovered from those who were charged with stealing by deceit after their cases were referred to their local prosecuting attorneys.

“During a time when unemployed Missourians need it most, our department will protect the integrity of the unemployment program by aggressively pursuing those violating the law and receiving benefits that do not belong to them," Larry Rebman, department director, said in the release. "Employers provide this safety net for those who lose their job due to no fault of their own, not for those looking for extra cash while working another job."

During 2010, the department referred 283 cases to local prosecuting attorneys, a 7.2 percent increase in referrals from 2009.

Rebman attributed the increase to those continuing to file unemployment benefits after returning to work.

The department has collected $24 million in penalties for fraud overpayments since 2005.[[In-content Ad]]