Fraudulent Unemployment Claims Land Oregon Man in Jail for Six Months

The case of a Portland man sentenced to six months in prison last week for stealing unemployment benefits was one of only a handful of convictions since the Oregon Employment Department (OED) lost $100 million to fraudulent claims during the pandemic in 2020 and 2021.

 

Matthew Kemp Stole More Than $147,000 From the OED

Matthew Kemp (41) pleaded guilty to stealing more than $147,000 in jobless claims he filed with the OED on behalf of 17 people. He then spent the money on himself.

Kemp agreed to repay the money as part of a plea deal.

Kemp filed claims using the Social Security numbers and birth dates of 17 people, some of whom were aware of his endeavors and mistakenly thought that they would receive the benefits, according to prosecutors.

 

Kemp Complained When the OED Was Slow to Pay

Prosecutors also revealed that on occasion, when the OED was slow to pay Kemp’s fraudulent claims, he would call the OED to complain, impersonating dthe applicant.

In one voicemail recorded by the OED, Kemp says: ‘What’s going on with your system that you keep losing my information? Please call me ASAP to let me know…when to expect my money.’

The OED paid all 17 of Kemp’s fraudulent claims, mailing checks and debit cards to his home address.

Kemp was a frequent drug user during this period, according to prosecutors.

While billions of dollars in unemployment benefits were stolen during the pandemic in other states, the scale of this criminal activity was much lower in Oregon.

The state reported losing $24 million in unemployment benefits fraud in 2020, with a further $76 million in fraudulent jobless claims in 2021. The OED also revealed that there were five convictions for fraudulent claims of unemployment benefits in 2021.

During the pandemic, Oregon was slower to pay out jobless benefits than many other states, spending more time checking for fraudulent claims.

The OED also implemented a practice of mailing first payment benefits to the claimants’ home address or Post Office box which is believed to have helped prevent cyber theft.

However, fraud has remained a problem for the OED since the pandemic. It slowed down the payment of legitimate claims since the beginning of 2023, a trend that continued well into 2024.

 

References

https://www.oregonlive.com/business…

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