INDIANAPOLIS (January 11, 2013) – Kokomo resident Rick A. Kem, 51, pled guilty Wednesday, January 9, 2013 in Howard County Circuit Court to unemployment insurance fraud, a Class C Felony. Kem purposefully defrauded the system by collecting unemployment insurance benefits while working full-time.

The investigation began when Kem’s employer received a notice from the Indiana Department of Workforce Development (DWD) stating they were being charged for his unemployment insurance benefits. The employer notified DWD that Kem was working full-time by completing a form that allows employers to dispute claims for unemployment insurance. This form is available online at www.in.gov/dwd/protest.pdf. Using agency records and information from the company, DWD investigated and was able to verify Kem worked full-time while receiving unemployment insurance benefits.

“Every time Mr. Kem filed for benefits while he was working a full-time job, he knew he was committing a crime. His actions were blatant,” said Scott B. Sanders, Commissioner of the Indiana Department of Workforce Development. “When an individual fraudulently collects unemployment benefits they take funds away from those who are truly in need and cost Hoosier businesses more money.”

Kem was sentenced to four years probation, but will serve the time in prison if he violates the conditions of his plea agreement. He must also repay DWD for the benefits he fraudulently collected, plus interest, totaling $27,318.

Each month, DWD sends employers a notice documenting their charges for former employees’ unemployment insurance benefits. This provides employers an opportunity to dispute claims for unemployment insurance benefits.

You can also help combat unemployment insurance fraud and abuse by reporting it online at www.in.gov/dwd/fraud. Your efforts will help ensure tax dollars are spent wisely and unemployment insurance benefits are only paid to people who are eligible to receive them. You do not need to provide your name or any other identifying information in order to file a complaint in regards to unemployment insurance fraud.

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