Railroad employee pays to settle False Claims Act liability

HOUSTON – A 53-year-old federal railroad employee has agreed to pay $24,000 to resolve potential violations related to his submission of unemployment benefit claims under the Railroad Unemployment Insurance Act during the COVID-19 pandemic, announced U.S. Attorney Nicholas J. Ganjei.

Between April 20, 2020, and Aug. 27, 2021, Chad Gillingwater, Katy, allegedly falsely claimed federal unemployment benefits.

Gillingwater was not entitled to those funds because he was already receiving state unemployment benefits and/or paid leave from his employer at the same time. Gillingwater also received additional benefits under The Coronavirus Aid, Relief and Economic Security Act, which extended unemployment insurance benefits for railroad workers sidelined during COVID-19.

The U.S. Attorney’s Office conducted the investigation with assistance from the Railroad Retirement Board - Office of Inspector General. Assistant U.S. Attorney (AUSA) Michelle Luong handled the matter.