Seven former TWC employees convicted for filing false claims

An investigation by the Texas Workforce Commission (TWC) and the U.S. Department of Labor (DOL) Office of Inspector General (OIG) of a former TWC employee and six others has resulted in convictions on charges stemming from a scheme to file false Unemployment Insurance (UI) benefits claims totaling $61,617.

Former San Antonio workforce center employee Sylvia Hawkins was convicted on one count of mail fraud conspiracy, ordered to serve five years’ probation, pay all or part of $61,617 in restitution, and serve 200 hours of community service.

The investigation revealed false claims, conspiracy, mail fraud and theft of government benefits, and occurred while Hawkins was employed by TWC. TWC discovered that Hawkins coached her family and friends on how to file false UI claims using fictitious employers. Hawkins also abused her access to the TWC benefits mainframe system to enter the fabricated claims. The case was presented to the U.S. Attorney’s Office, Western District, on May 5, 2010.

“TWC takes these offenses very seriously,” said TWC Chairman Andres Alcantar. “The UI benefits program is designed to help those out of work through no fault of their own, and we pursue those who try to steal from it.”

The use of the U.S. Postal service also was an integral part of this scheme to defraud TWC as the false claims generated multiple pieces of correspondence to the false claimants and alleged employers.

“The UI benefits program is here to help those Texans who need some assistance while looking for another job,” said TWC Commissioner Representing Labor Ronny Congleton. “Our investigations unit also is here to make sure we recover the funds stolen from their intended purpose.”

Also convicted in the scheme were:

• Matthew Saenz, guilty of theft of government property and ordered to pay $3,642 in restitution. Saenz also received one year probation.
• Mary Jane Gonzalez, guilty of mail fraud conspiracy and ordered to pay all or part of $19,591 in restitution. Gonzalez also received five years’ probation.
• Mark Gonzalez, guilty of mail fraud conspiracy and ordered to pay all or part of $19,591 in restitution. Gonzalez also received five years’ probation.
• Johnny Gonzalez, guilty of mail fraud conspiracy and ordered to pay all or part of $19,591 in restitution. Gonzalez also received a 12-month and one-day prison term and three years’ supervised release.
• Norma Saenz, guilty of mail fraud conspiracy and ordered to pay all or part of $61,167 in restitution. Saenz also received five years’ probation.
• Yvonne Rivette, guilty of mail fraud conspiracy and ordered to pay all or part of $61,167 in restitution. Rivette also received five years’ probation.

TWC’s Regulatory Integrity Division (RID) is charged with detecting and preventing fraud, waste and abuse. RID enforces all regulatory statutes within the jurisdiction of the agency, including Tax, Workforce, Trade Act, Skills Development Fund, Self-Sufficiency Fund, Child Care Development Fund and all other programs that TWC administers. Prevention, detection and elimination of fraud, waste and abuse in the UI benefits program are top priorities; ensuring funds are available exclusively to those who meet the eligibility requirements.

“Our agency takes the issue of claim fraud very seriously,” said TWC Commissioner Representing Employers Tom Pauken. “Our agency protects this program intended for those who lose their job through no fault of their own, and the employers who fund it.”

TWC administers UI benefits to workers who become unemployed through no fault of their own and are actively seeking work. TWC regularly cross-matches UI claims with employer wage reports and other databases to detect possible UI fraud. When TWC discovers that claimants have received UI benefits through fraudulent applications, the agency seeks immediate reimbursement of overpayments. Examples of UI fraud include giving false information and failure to report self-employment or other earnings while receiving UI benefits.

To report suspected UI fraud, call the TWC Fraud and Program Abuse Hotline at 800-252-3642. For updates on fraud convictions, visit TWC’s website here.