Arrests in Costly Unemployment Fraud Scheme

Jan 15, 2013 8:08 PM

There were new arrests Tuesday in connection with an elaborate fraud scheme, that cost state taxpayers more than five million dollars.
Balkar Singh, Harvinder Kaur and Harjinder Kaur-Thandi of Yuba City are charged in a 36 count indictment involving false unemployment claims.
Six others will appear in court to face charges at a later date.
Federal prosecutors say three members of the Khan family of Yuba City controlled a number of farm labor companies.
They allegedly used them to report false wages for people who bought fake pay stubs ... to later use for unemployment and disability benefits.
Investigators say false wages were reported for four hundred people, resulting in two thousand fraudulent claims for benefits.
There have been twelve other indictments in this case over the past year.##


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