Taunton unemployment fraudsters 'stole' mayor's name to file claim

TAUNTON — Unemployment fraud has been big business for scammers during the COVID crisis. Count the city — but not Taunton taxpayers — among the victims.

The city paid $190,000 on COVID-related unemployment claims that later turned out to be bogus, according to Mayor Shaunna O'Connell. The money came from the "Coronavirus Aid, Relief and Economic Security Act," known as the CARES Act. The city received more than $5M from the federal aid program.

The grifters even used the mayor's name, and the names of other city personnel, to trick the state into approving their false claims.

"Someone stole my identity and they submitted a claim," Budget Director Gill Enos said during a recent meeting at City Hall. "I got a notice in the mail saying, 'Your unemployment's been approved' and I said I never [applied.] It happened to the mayor, it happened to a few other people in this building."

The episode began after the city laid off employees from the schools and library department as part of state-mandated closings. Flim-flam artists worked quickly to file false claims.

The city grokked the fraud when municipal employees began getting letters from the Department of Unemployment Assistance like the one Enos received, according to Ligia Medeira, COVID coordinator for the city. To Medeira's knowledge, every bogus claim used the name of a real city employee.

The theft won't directly cost city taxpayers, the mayor said.

More:See which Taunton small businesses received COVID grants up to $10,000

"This $190,000 has been recouped from the state as a result of conscientious investigation of fraudulent claims by our Treasurer’s Office in conjunction with the Department of Unemployment Assistance," O'Connell said in an email to the Gazette. "Our city has not lost any money from our CARES account for fraudulent claims."

Of course, Taunton residents also pay state taxes, and the impact on state coffers of the widespread fraud remains unclear.

Under the CARES Act, Taunton was able to do a variety of projects, including:

• $1.49M for ventilation upgrades at Taunton schools
• $653,500 for desk dividers at Taunton schools
• $112,000 for ventilation upgrades at the former Maxham School

The mayor said the city didn't lose out on the opportunity to use the $190,000 paid on false unemployment claims for other projects because "our CARES funding has been fully utilized through the CARES Act process."

The city does not use unemployment insurance. Instead, it pays dollar-for-dollar on unemployment claims, according to both Enos and Madeira. The city being able to use federal money meant the city didn't have to tap its general fund for the unemployment claims, O'Connell said.

Unemployment fraud has been rampant during COVID. One grifter interviewed by USA Today said it's simple to find the information needed to file a bogus unemployment claim.

The city paid $572,000 in CARES Act aid on valid COVID-related unemployment claims, the mayor said.

Send your news tips to reporter Chris Helms by email at CHelms@tauntongazette.com. Support local journalism by purchasing a digital or print subscription to The Taunton Daily Gazette.