Michigan City Man Sentenced on Unemployment Insurance Fraud

A Michigan City man was sentenced in a Northern Indiana U.S. District Court to a charge of Unemployment Insurance Fraud, a Class C felony.

Terry W. Smith, 44, purposely defrauded the system by collecting unemployment insurance benefits while working full-time.

Smith’s employer received a notice from the Indiana Department of Workforce Development stated that they were being charged for his unemployment insurance benefits. The company advised that he was working full-time at that establishment and he signed a form that allows employers to dispute claimed for unemployment insurance. Using agency records and information from the company, the Department of Workforce Development was able to verify that Smith worked full-time while receiving unemployment benefits.

Smith pleaded guilty in a plea agreement and was sentenced to three years of probation, but he will serve that time in prison if he violates the conditions of his plea agreement. He must also repay the Department of Workforce Development $18,330 for the benefits he fraudulently collected.

You can help the Department of Workforce Development in combating unemployment insurance fraud and abuse by reporting it anonymously online at www.in.gov/dwd/fraud. Your efforts will help ensure your tax dollars are spent wisely and unemployment insurance benefits are only paid to people who are eligible to receive them.