Putnam County man pleads guilty to unemployment insurance fraud

A 34-year-old Putnam County man has pleaded guilty to unemployment insurance fraud, the Indiana Department of Workforce Development announced Monday.

Roachdale resident Richard L. Smith pled guilty in Putnam County Circuit Court Feb. 12 to welfare fraud, a Class D felony.

Smith purposefully defrauded the system by collecting unemployment insurance benefits while working full-time, Workforce Development officials said.

The investigation began when an Indiana Department of Workforce Development (DWD) employee confirmed Smith was working and receiving wages while simultaneously claiming unemployment insurance benefits.

Using agency records and information from Smith's employer, DWD investigated and was able to verify he worked while claiming unemployment insurance benefits.

Smith was ordered to repay $52,554 to DWD for the benefits he fraudulently collected. The Roachdale man was also sentenced to nine months in prison.

DWD receives wage reports and new hire data from Hoosier employers documenting who is employed and receiving compensation. The agency uses this information to ensure people are not collecting unemployment insurance benefits while working.

The public can also help combat unemployment insurance fraud and abuse by reporting it online at www.in.gov/dwd/fraud. Such efforts will help ensure tax dollars are spent wisely and unemployment insurance benefits are only paid to people who are eligible to receive them, DWD officials said. Persons need not provide their name or any other identifying information in order to file a complaint in regard to unemployment insurance fraud.