Three S.C. Residents Arrested for Unemployment Insurance Benefits Fraud
March 2, 2015
The South Carolina Department of Employment and Workforce (DEW) and the South Carolina Attorney General’s Office announced today the arrests of three S.C. residents for fraudulently collecting unemployment insurance benefits.
According to DEW, an alleged fictitious employer scheme took place that centered on one of the three individuals claiming to operate one or more companies in Richland and Lexington counties. These companies were used to report false wages to DEW. Later, one or more of the alleged co-conspirators would file a claim with DEW as a discharged employee using the fake wages to qualify for and ultimately collect unemployment benefits.
The alleged ringleader, Diana B., Jordan, 53, of Chapin and her two alleged co-conspirators Kimberly L. Szabo of Chapin, 45, and James J. Walleshauser, 56, of Irmo were arrested in January. Between 2002 and 2013, Jordan, Szabo and Walleshauser allegedly took part in fraudulent activities, including registering five fictitious employer accounts with DEW and reporting fake wages paid to employees for the purpose of collecting unemployment benefits.
A DEW anti-fraud unit launched an investigation after it discovered suspicious activity. Prior to its discovery, these three individuals allegedly defrauded the state out of approximately $70,000 in unemployment benefits.
The defendants will be prosecuted by the SC Attorney General’s Office, which stresses that all defendants are presumed innocent unless and until they are proven guilty in a court of law.
To report suspected unemployment insurance fraud, call 1.800.868.1488. Callers can remain anonymous.
To learn tips on how to help prevent unemployment fraud, visit dew.sc.gov/fraud.
