BOSTON – Yesterday, Suffolk Superior Court Judge Carol Ball sentenced a Dedham man for collecting unemployment benefits while he continued to work as a loan officer for a mortgage company. Richard Kane, age 36, was sentenced after pleading guilty to larceny and unemployment fraud. Judge Ball ordered Kane to serve 3 months probation, and ordered him to pay full restitution in the amount of $13,775.
According to authorities, in October 2005, Kane reported to the Massachusetts Department of Unemployment Assistance (DUA) that he was unemployed. Kane claimed to the DUA that he was looking for work, was available and able to work, but was unable to find a job and therefore was entitled to unemployment benefits. Kane received $551 in weekly unemployment insurance benefits.
From October 4, 2005, through May 6, 2006, Kane made weekly representations to the DUA that he was unemployed. Authorities found however, that Kane had been working full-time as a senior loan officer at East/West Mortgage in Dedham since November 14, 2005. Despite his employment as a loan officer, Kane continued to make weekly telephone calls to the DUA informing them that he was unemployed. For twenty-five consecutive weeks, Kane earned a salary and a commission from the mortgage company while collecting $13,775 in unemployment benefits.
Suspecting fraud, DUA investigators found Kane to be employed at East/West Mortgage. DUA officials then referred the case to the Attorney General’s Insurance and Unemployment Fraud Division for further investigation. On January 10, 2007, Kane was indicted by a Suffolk County Grand Jury and was charged with unemployment fraud and larceny over $250. On February 7, 2007, Kane was arraigned in Suffolk Superior Court. At arraignment he pled not guilty and was released on personal recognizance.
On Wednesday afternoon, following a change of plea from not guilty to guilty, Judge Ball ordered Kane to serve 3 months probation and pay full restitution. The prosecutor assigned to this case was Assistant Attorney General Francesca Stabile of Attorney General Coakley’s Insurance and Unemployment Fraud Division.
To report unemployment fraud to the DUA, call the toll free hotline at 1-800-354-9972 anytime, 24-hours a day. Callers to the hotline may share information anonymously.
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