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New Jersey cracking down on unemployment fraud


When people hear the words white collar crime, they often think of the super rich CEOs of global companies participating in schemes to defraud investors or people asking for investments in Ponzi schemes. The truth is, anyone can commit or be accused of a white collar crime. Unfortunately, sometimes people in New Jersey who are considered low or middle-income are treated much differently when they are accused of fraud than those who high-ranking company officials.

Now, New Jersey is underway with a crackdown on unemployment benefits fraud. The state says they are hoping to catch people who are employed but still receiving benefits, a move that officials say could save the state $100 million.

The move could also mean some people are falsely accused of fraud or don't receive the benefits they need to sustain their living. The state will use a database of newly hired individuals and compare that database to the list of people receiving unemployment benefits. If there is a match, the people are responsible for clearing the inconsistency before they can claim benefits going forward.

Sometimes people might be hired for a part-time job, and still need some benefits to make ends meet, or they may have the same name as another person who is on the newly hired list. Reports are unclear as to how these issues are handled. If someone is accused of New Jersey unemployment fraud they may want to speak with an attorney. An attorney can help them understand their rights and navigate the legal process.

Source:, "N.J. eyes $100 million in unemployment-fraud crackdown," Phil Gregory, Feb.12, 2012

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