Roachdale man, 33, accused of nearly $90,000 welfare fraud

By ERIC BERNSEE

Editor

A 33-year-old Putnam County man is facing welfare fraud charges for allegedly receiving nearly $90,000 in illegal unemployment benefits over more than a three-year period.

Richard Lewis Smith of Roachdale, who was arrested on a warrant served by Roachdale Town Marshal Mike Mahoy, made an initial appearance in court Monday afternoon, going before Putnam Circuit Court Judge Matt Headley in a video conference from the Putnam County Jail, where the suspect was being held.

Richard L. Smith

Judge Headley entered a preliminary plea of not guilty for Smith, scheduling an April 10 pretrial conference and setting bond at $20,000 (10 percent allowable).

An investigation by Dennis W. Patton of the Indiana Department of Workforce Development alleges that Smith secured and accepted unemployment benefits to which he was not entitled over a period from Jan. 12, 2008 through May 12, 2012.

Total overpayment alleged in the welfare fraud case was listed at $89,868.50, which reportedly includes $35,652 in penalties.

A probable cause affidavit filed in the case notes that the investigation was initiated by a complaint from Walmart, stating that Smith was working while drawing unemployment benefits.

Investigators obtained Walmart payroll records, which listed Smith as having earnings during the weeks in which he was claiming unemployment benefits.

Workforce Development records also show that Smith filed vouchers for benefits covering weeks ending Jan. 12, 2008 to May 19, 2012.

In 169 of the weeks claimed, the probable cause affidavit notes, Smith was employed and had real earnings. In none of those weeks, the investigator's report continued, did Smith report any earnings.

Smith never denied his actions during a June 27 interview in the Greencastle WorkOneExpress Office. He did, however, claim he failed to report his employment and earnings because of a "miscommunication about waiver claims," court documents note.

A waiver claim allows a claimant with a recall-to-work date to forego a search for a new job, but "in no way allows for a failure to report any and all employment and earnings," the probable cause document added.

Under Indiana Code, welfare fraud is a Class C felony, punishable by 2-8 years in prison and a fine of up to $10,000.