States Attorney's Office District of Connecticut
|March 24, 2011||
FORMER WESTPORT RESIDENT ADMITS ILLEGALLY
David B. Fein, United States Attorney for the District of Connecticut, announced that RALPH HYMANS, 87, of Summerville, South Carolina, pleaded guilty today before United States District Judge Mark R. Kravitz in New Haven to one count of mail fraud stemming from a long-running scheme during which he fraudulently received more than $300,000 in unemployment benefits.
According to documents filed with the court and statements made in court, the Federal and State Unemployment Insurance System, which is designed to provide benefits to persons who are out of work due to no fault of their own, is administered for the federal government by state employment offices. The U.S. Department of Labor oversees the Unemployment Insurance System and the federal government funds all administrative costs, including salaries and office expenses for the employment offices. Benefits paid to unemployed workers from the private sector are financed by taxes on employers in the State of Connecticut by the State’s Department of Labor.
From approximately January 1995 to April 2009, HYMANS, who formerly resided in Westport, engaged in a scheme to defraud the Connecticut Department of Labor by collecting unemployment benefits to which he was not entitled. In January 1995, HYMANS filed his first unemployment insurance (“UI”) claim with the Department of Labor, and HYMANS began receiving weekly UI benefits, which continued to approximately September 12, 1995. In January 1996, HYMANS filed a second claim for UI benefits, falsely claiming that he had worked for “Monroe Management” in the months of September, October, November, and December 1995, as well as a portion of January 1996. These five months qualified him for three quarters – the last two quarters of 1995 and the first quarter of 1996 – and HYMANS received weekly UI benefits from approximately January 31, 1996 to September 15, 1996.
HYMANS then continued a pattern of falsely claiming to have earned wages from Monroe Management for a portion of the year, usually three quarters, and then filing a UI claim against those wages the following year. HYMANS received UI compensation from the Department of Labor for a portion of each year, usually for about eight months, from the initial claim in 1995 through approximately April 2009.
As a result of this scheme, the Department of Labor of was defrauded out of approximately $312,804.
Judge Kravitz has scheduled sentencing for June 14, 2011, at which time HYMANS faces a maximum term of imprisonment of 20 years and a fine of up to $250,000.
This case is being investigated by the United States Department of Labor, Office of Inspector General and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Paul McConnell and Christopher Mattei.
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