Live Oak woman pleads guilty to federal fraud charges

Nov 6, 2014 1:45 PM by News Staff

A Live Oak woman is facing 20 years in prison after she plead guilty in federal Court Thursday to conspiring to commit mail fraud in a fictitious employer scheme.

34-year-old Iqila Khan is one of 28 defendants charged in a long-running Yuba City-based scheme in which the defendants set up farm labor contracting businesses that purported to provide labor to harvest various crops in Sutter and Yuba Counties.

The defendants registered the businesses with the California Employment Development Department and reported employees and their wages to EDD. Organizers of the scheme sold fraudulent paystubs to other people and reported the wages to EDD. The purchasers of the fake wages could then subsequently file for unemployment or disability benefits with EDD based on their fictitious "employment."

According to court documents, Khan sold fake wages on behalf of the companies at a rate of $250 for every $1,000 of reported "wages."

Khan will be sentenced on January 29, 2015.


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