Attorney General Peter F. Kilmartin announced two separate plea agreements for cases involving unemployment insurance benefits fraud. Through its partnership with the Rhode Island Department of Labor and Training (RI DLT), the Office of Attorney General has secured restitution of nearly $500,000 for the State of Rhode Island as a result of pleas reached in cases of unemployment insurance benefits fraud and workers compensation fraud.
"Unemployment fraud is not a victimless crime – it causes business owners to pay more in unemployment insurance taxes, and it damages the integrity of a safety net program that many struggling Rhode Islanders rely upon. Fraudulently collecting unemployment insurance benefits is no different than picking the pockets of small business owners – it's stealing, plain and simple," said Attorney General Peter F. Kilmartin.
Pedro Diaz (age 40) with a last known address of 374 Webster Avenue, Cranston, RI, pleaded nolo contendere before Providence Superior Court Magistrate Patrick Burke to one count of obtaining money under false pretenses for collecting more than $19,000 in unemployment insurance benefits while he was working and failed to report his wages.
Diaz was sentenced to six years probation and ordered to pay restitution in the amount of $19,010 to the State of Rhode Island.
Had the case proceeded to trial, the State was prepared to prove beyond a reasonable doubt that between June 10, 2006 and May 5, 2012 Diaz failed to report any of his weekly earnings to the Rhode Island Department of Labor and Training when he called into the voice response system at the RI DLT to authorize his weekly benefits. While Diaz was collecting unemployment benefits he was working for Spectator Management Group/Rhode Island Convention Center.
DLT fraud investigator Colleen E. Ferreira handled the case initially, referring it to the Rhode Island State Police Auto Theft and Insurance Fraud Unit, where Detective David Gormly completed the investigation.
Katrina C. Roy (age 33) with a last known address of 35 River Street, Cranston, RI, pleaded nolo contendere before Providence Superior Court Magistrate Patrick Burke to one count of obtaining money under false pretenses for collecting nearly $18,000 in unemployment insurance benefits while she was working full time for Lifespan Corporation. Roy was sentenced to 10 years probation and ordered to pay restitution in the amount of $17,924 to the State of Rhode Island.
Had the case proceeded to trial, the State was prepared to prove beyond a reasonable doubt that between December 25, 2010 and January 7, 2012, Roy failed to report any of her weekly earnings to the Rhode Island Department of Labor and Training when she called into the voice response system at the RI DLT to authorize her weekly benefits. While Roy was collecting unemployment benefits, she was working full time for Lifespan Corporation.
DLT fraud investigator Tommy Ariza handled the case initially, referring it to the Rhode Island State Police Auto Theft and Insurance Fraud Unit, where Detective Adam Kennett completed the investigation.
Special Assistant Attorney General Genevieve Allaire Johnson prosecuted both cases on behalf of the State.