[Vendorsmi] unemployment fraud case

[Joe Sontag]

I'm not saying that the BEP faces this problem exactly, but I'm presenting this story in order to show that even the slickest among us may get nailed; and we have more than our share of slicksters in the area of employer responsibilities.

----- Original Message -----
Sent: Wednesday, October 31, 2012 21:29
Subject: Unemployment Fraud case
Could BEP operator fraud be next case?
Tuesday, October 30, 2012
Lansing
 mother, son convicted on federal charges in alleged unemployment fraud 8:44 PM,
Oct 30, 2012 | .
GRAND RAPIDS - The owners of a Lansing
 landscaping company face prison time after being convicted on federal charges in
an alleged scheme to defraud the unemployment insurance system. Kevin Romando Johnson,
39, and his mother, Sara Johnson, 69, both of
Lansing
, were found guilty of mail fraud Tuesday after a six-day trial in U.S. District
Court in
Grand Rapids
, the U.S. Attorneys Office said. Kevin Johnson also was convicted of making a false
statement to a federal agent. The government alleged the Johnsons, who owned Lansing
Total Lawn Care, coerced laid-off employees to apply for unemployment benefits and
forced them to work during the winter months with no pay. Some workers also testified
they were forced to give the defendants money from their unemployment checks, the
attorneys office said. Mail fraud is punishable by up to 20 years in prison and a
fine of $250,000 or up to twice the amount of loss caused by the scheme. Lying to
a federal agent is punishable by up to 5 years in prison and a $250,000 fine.
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