3 arrested for COVID unemployment compensation fraud

(WFSB) - Three people were arrested in connection with the theft of more than $80,000 worth of COVID-19 unemployment assistance.

Otis Paramore, 43, and Christine DeBiase, 39, of Branford, and Gloria DeBiase, 75, of Stratford, were arrested on May 10 as the result of a statewide investigation by the Office of the Chief State’s Attorney.

The Connecticut State Division of Criminal Justice said investigators began looking into the case following a complaint from the Department of Labor.

According to arrest warrant affidavits, Paramore and Christina DeBiase fraudulently collected approximately $68,541 in unemployment benefits by filing false claims under their own names and the names of Paramore’s deceased father and deceased grandparents. Paramore and Christina DeBiase are also accused of assisting Gloria DeBiase in filing false unemployment claims totaling $11,268. In addition, Christina DeBiase defrauded the Connecticut Department of Labor out of a weekly dependent allowance totaling $600.

Paramore and Christina DeBiase were charged with several counts of unemployment fraud, identity theft, and larceny.

Paramore is due in New Britain Superior Court on May 24.

Gloria DeBiase was charged with unemployment fraud and larceny.

The DeBeiases are set to face a judge on May 19.

The Statewide Prosecution Bureau in the Office of the Chief State’s Attorney’s Office said it is working with the Connecticut Department of Labor to identify, investigate, and prosecute alleged fraud in the unemployment compensation program. The unemployment fraud prosecution unit, announced on May 18, 2021, also works to return stolen funds to the unemployment system and deter future fraud.

“These arrests are the result of significant collaborative efforts by our two agencies,” said Kevin D. Lawlor, deputy chief state’s attorney of operations. “By working together, both agencies are beginning to hold accountable those who allegedly took advantage of an unemployment benefit system that was overwhelmed by the COVID-19 pandemic.”

In March 2020, in response to the global COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The CARES Act created multiple temporary federal unemployment insurance programs which were administered by the Connecticut Department of Labor. Since March 2020, the labor agency has received more than 1.5 million applications.