State cracks down on unemployment fraud

By Mike Owens, I-Team Reporter

KSDK -- The Missouri Department of Labor has collected about $800,000 so far this year from employed Missourians who claimed they were not.

The refunds are part of a crackdown by the state in light of continued high unemployment. The state sent out a list earlier this month, of all the people who pleaded guilty to stealing unemployment benefits. On that list were two men from the area: Jamie Bade of Washington, Missouri, and Darryl Gaines of north St. Louis County.

Bade and Gaines pleaded guilty to stealing and are paying restitution. However, when NewsChannel 5 tracked the men down, both denied any wrong doing, saying the money appeared in their accounts without them doing anything to collect it. But both men still pleaded guilty.

In addition, Amy Susan, a spokeswoman for the Department of Labor, said the men had to go to an office and say they didn't have work in order to collect the benefits. Both men received about $5,000 and both men had to declare unemployment for weeks on end.

Men and women at the Maplewood Career Center, which used to be called the unemployment office, said they are incensed by the fakers who collect benefits, even though they are working.

One man, who's been jobless for eight months, said it feels like he's being victimized a second time. First by losing his job and now by the folks who say they don't have jobs when they do.

Susan said the state is very aggressive with the unemployment collections, especially since the unemployment insurance fund is being drawn down so quickly. Experts say unemployment is hovering at about 10 percent.

Since NewsChannel 5 began airing promotions about this story, the station has received a number of calls from viewers who say they know people who are collecting benefits, but really have jobs. If you know someone like that, the Department of Labor would like to hear from you. Visit their fraud hotline website by clicking here.