Everett Man Charged with Scheme to Defraud the Massachusetts Department of Unemployment Assistance
BOSTON – An Everett man was charged today in U.S. District Court in Boston in connection with a scheme to defraud the Department of Unemployment Assistance of more than $1.8 million.
Edison Delarosa, 52, was arrested and charged by complaint with one count of mail fraud and one count of wire fraud. He was released on conditions following an appearance before U.S. District Court Magistrate Judge Page M. Kelley.
From approximately January 5 through November 24, 2016, Delarosa engaged in a scheme to defraud the Commonwealth of Massachusetts by exploiting the Department of Unemployment Assistance’s (DUA) online system, which allows claimants to manage their unemployment insurance accounts over the internet. On multiple occasions, Delarosa, who did not actually owe DUA any money, submitted bogus “repayments” online, which triggered the release of “refund” checks payable to him in varying amounts. During the course of the scheme, Delarosa submitted a total of 136 fraudulent “repayments,” amounting to $1,813,170, for which DUA issued him 15 paper “refund” checks, totaling $1,251,283. DUA uncovered the scheme after six of those checks, totaling $27,227, were mailed to Delarosa and deposited into his account.
The charges of wire fraud and mail fraud provide for a sentence of no greater than 20 years in prison, three years of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations, New York Region; Mattew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The Commonwealth of Massachusetts’ Department of Unemployment Assistance cooperated with the investigation. Assistant United States Attorney Anne Paruti of Weinreb’s Major Crimes Unit is prosecuting the case.