UIA regulation agent wins federal award for role in smashing benefits theft ring

A senior investigator with the Michigan Unemployment Insurance Agency (UIA) has been honored with a national award for helping expose an unemployment fraud ring that operated in Michigan and other states. The investigation landed 15 people in prison and halted a scheme to steal millions in taxpayer money during the COVID-19 pandemic.

The Regulation Agent was presented with the Department of Labor Inspector General Special Achievement Award for successfully busting the bad actors. It's the third time the agent has won the award for investigations. The award also marks the sixth time in seven years UIA investigators have been nationally recognized by the U.S. Department of Labor (USDOL) for their work fighting fraud.

“We are extremely proud of the work our regulation agents do in their aggressive fight against fraud,” said UIA Director Julia Dale. “This work exemplifies the very best in investigative techniques to allow us to build solid cases that stand up in court. I’ll put our agent's skills up against any agent in the country when it comes to fighting fraud.”

The agent was a key partner to state and federal law enforcement agencies as they probed fraudulent claims filed in Michigan beginning in February 2020. His work alongside staff from the Federal Bureau of Investigation (FBI), the DOL’s Office of Inspector General (USDOL-OIG), and the United States Attorney's Office for the Eastern District of Michigan, exposed 15 suspects, who have all now been found guilty of wire fraud, conspiracy to commit wire fraud, or aggravated identity theft. The last suspect was sentenced to prison this past January.

Using stolen personal information, more than 100 fraudulent claims were filed in Michigan and nearly 600 in 19 states. The scheme would have netted the perpetrators nearly $7 million if they weren't caught. At sentencing, they were ordered to pay $2.2 million in restitution, according to the U.S. Attorney’s Office. 

“I want to thank the DOL and all our law enforcement partners for bringing these criminals to justice,” Director Dale said. “It is our mission to create an agency that is a national model for fast, fair, and fraud-free service, and our partners have been instrumental in bringing bad actors to justice and helping us achieve that mission.”

UIA’s string of investigation successes

Since March 2020, 162 individuals have been charged in connection with the theft of unemployment benefits in Michigan, 91 convicted, and 71 sentenced. More than $90 million has been recovered.

The UIA’s most recent national award, presented last week, is the sixth time in the past seven years the U.S. DOL-OIG recognized UIA’s robust anti-fraud efforts:

• In 2023, UIA’s cooperative efforts to bring down the Broward County Bunch was awarded by DOL. Three criminals stole more than $250,000 from Michigan and Florida in one of the largest pre-pandemic unemployment insurance fraud cases in terms of dollars stolen and the number of victims.
• 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.
• In 2017, three fraud investigators received the Inspector General Special Assistance Award for their work fighting identity theft and unemployment insurance fraud. Their investigative work led to 24 convictions, more than $2.2 million in criminally ordered restitution, and over $1.5 million of administrative penalties issued against subjects in Michigan and Florida.

Agency prioritizes fighting fraud

Fighting fraud is a cornerstone of preserving the integrity of the unemployment insurance program in Michigan and Director Dale is committed to providing the resources needed to stop fraud. Among the reforms she has put in place:

• Naming a Legal Advisor and creating the Legal and Compliance Bureau to leverage collaborative anti-fraud practices to pursue bad actors, in collaboration with the Michigan Attorney General’s office, and local, state and federal law enforcement.
• Planning a replacement for the decade-old MiWAM computer system used by workers to apply for benefits and employers to pay unemployment insurance taxes. The new computer system will be easy to use, allow for timely claims processing, and build on the agency’s robust anti-fraud tactics. It is expected to be fully operational in 2025.
• Hiring nearly 100 limited-term employees to help build fraud cases, address remuneration questions, and resolve issues for victims of fraud and identity theft.
• Implementing new ethics and security clearance policies for employees and contractors.

Need help with a claim or have questions?

Speak with an agent: Schedule an in-person, phone, or virtual meeting at Michigan.gov/UIA.

Call Customer Service: 1-866-500-0017 during regular business hours.

Chat with Ava: Our chatbot can answer many questions at Michigan.gov/UIA.

Guidance for workers

• Follow the UIA Claimant Roadmap at Michigan.gov/UIAClaimantRoadmap.
• Schedule a First-time Filer Coaching Session.

Guidance for employers

• Go to the Employer Help Center at Michigan.gov/UIAEmployerHelpCenter.