UIA wins U.S. Department of Labor award for smashing unemployment fraud ring

Agency recognized nationally 4 times since 2019 for its anti-fraud work

A facial scar, a partial license plate number, and a pizza restaurant uniform helped fraud investigators with the Michigan Unemployment Insurance Agency (UIA) bring down a multi-state criminal enterprise that defrauded taxpayers of more than $250,000 in unemployment benefits. The successful investigation was lauded recently by the U.S. Department of Labor's Office of Inspector General (USDOL-OIG) with a national award, the agency’s fourth since 2019.

Three Florida men identified as the Broward County Bunch were sentenced to prison after Michigan UIA investigators partnered with Florida and federal authorities to put an end to the brazen theft of taxpayer money in one of the largest pre-pandemic cases in terms of dollars stolen and the number of victims.

“Our investigators do an outstanding job identifying criminals who steal from taxpayers, and they are respected by their peers around the country,” said UIA Director Julia Dale. “This award puts bad actors on notice: Crime doesn’t pay and we will work closely with all our law enforcement partners to ensure that justice is served. I want to thank the Office of Inspector General for recognizing UIA’s hard work and we look forward to continuing our cooperative efforts to track down criminals.”

The case was a complex investigation involving extensive evidence gathering and collaboration with outside law enforcement. UIA maintains valuable relationships with law enforcement in Michigan and around the country to share resources, information and knowledge in tracking criminal schemes and bringing suspects to justice. Along with their prison sentences, the Broward County Bunch were ordered to repay Michigan a total of $269,720 in restitution.

Online transactions bring down Broward County Bunch

The Broward County Bunch’s scheme to steal money from UIA began to unravel when investigators noticed multiple computer transactions traced to a home in Broward County, Florida. At the same time, evidence was found that Michigan unemployment benefits were being deposited into 34 accounts at a Florida bank.

Michigan agents worked with their Florida counterparts to connect the activities and identify the suspects behind the scheme. UIA used bank ATM footage to positively identify first suspect, Mervin Mompremier, who was linked to the bank accounts where jobless benefits from Michigan were being deposited. Other video surveillance footage showed a man with a distinctive scar above his eyebrow, leading investigators to Sean Brown, who also was seen wearing a shirt from Pizza Hut, where he was working at the time. The third suspect, Robert Baptiste, was identified through a partial license plate number on a car owned by a female roommate, aiding investigators in linking him to one of the bank accounts.

After arrest warrants were issued for the three men, Baptiste was taken into custody as he arrived in the United States from Jamaica. Mompremier was arrested after police kicked in the door of his home as he was trying to destroy phones and computers. Brown barricaded himself in his residence before a SWAT team broke in to arrest him. In searching the premises, police found evidence of identity theft.

All three men were sentenced in December 2021 to serve between 16 and 65 months in prison.

The DOJ recognized UIA and its Florida counterparts, citing the agency’s role in protecting the integrity of Michigan’s unemployment insurance program. “The team’s commitment and exemplary performance of duty has been of significant value and benefit to the OIG and nation’s taxpayers,” said Kimberly Lacey, director of the OIG's Division of Human Resources Management.

UIA has string of investigation successes

This year’s award is the fourth since 2019 from DOL-OIG for fighting fraud:

• In 2022, a regulation agent was recognized for his successful investigation and prosecution of a UIA contract employee and two co-conspirators. The three defrauded the State of Michigan and the U.S. government of more than $3.8 million through fraudulent claims during the COVID-19 pandemic.
• In 2019 and 2020, the Michigan UIA was named the Most Improved Integrity Program for the previous year based on DOL performance metrics.

Fighting fraud is a cornerstone of preserving the integrity of the unemployment insurance program in Michigan. Director Dale has named Kim Breitmeyer as the UIA’s Legal Advisor and head of the Legal and Compliance Bureau, which will leverage collaborative anti-fraud practices to effectively pursue bad actors. To date, 115 individuals have been charged in connection with the theft of unemployment benefits in Michigan, 46 convicted, and 37 sentenced.

UIA collaborates with the Michigan Attorney General’s office as well as local, state and federal law enforcement to bring bad actors to justice and combat fraud at the agency. The agency also has implemented new ethics and security clearance policies for employees and contractors. UIA’s What is UI Fraud webpage explains the many tools and resources used to battle fraud.

Director leads wide-ranging agency reforms

Anti-fraud measures are among the many reforms launched under Director Dale, the 11th agency director in as many years. Since her appointment in October 2021, she has:

• Announced the replacement of the agency’s decade-old computer system with a user-friendly, state-of-the-art interface for claimants and businesses. Deloitte's uFACTS system will provide a totally new experience that will be easy to use, speed claims processing, and build on the agency’s aggressive anti-fraud tactics.
• Created the UIA Modernization Workgroup, consisting of labor, business and jobless advocates to advise the UIA on significant improvements in how it can better serve Michigan workers and employers.
• Rebuilt to nearly $2.2 billion (and growing) the UI Trust Fund from which weekly benefits are paid to workers.
• Approved over 76,000 overpayment waivers of state and federal benefits paid during the global pandemic, valued at more than $555 million. More waivers are pending.
• Halted overpayment collections on claims filed since March 1, 2020, while the agency addresses pending protests and appeals and refunded more than $12.5 million to more than 9,900 workers since May 2022.
• Identified initiatives and processes that would ease access to jobless benefits for workers in underserved communities under a $6.8 million USDOL equity grant.
• Secured a more than $2.3 million equitable access and communications grant from the USDOL Tiger Teams initiative to redesign and simplify how UIA engages with employers and develop a help center for accessing agency services.
• Reassigned staff and resources to address the largest categories of claims that are contributing to the agency’s case backlogs.
• Redesigned the agency’s public website at Michigan.gov/UIA for easier use on mobile phones and tablets.

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