The Texas Workforce Commission (TWC) assisted in an investigation into an unemployment insurance (UI) scheme that had been in operation for more than 10 years. The probe led to the arrest and conviction of a 41-year-old Edinburg man and his nine co-conspirators.

According to a TWC press release, last week, the suspect, Jose Luis Gonzalez, was sentenced to 74 months in federal prison and ordered to pay $531,161 for his role in the UI scheme.

The press release, citing the U.S. Attorney’s Office for the Southern District of Texas, stated that the operation dates back to August 2008 when Gonzalez began filing fraudulent unemployment claims with the TWC. Gonzalez used falsified information to identify himself as the employer, which allowed him to verify his own fraudulent claims. He also used social media to promote the scheme and recruit others to participate.

The UI scheme included 104 claims using 79 unique Social Security Numbers. Gonzalez filed seven claims for himself. Gonzalez and his nine co-conspirators pleaded guilty. All ten conspirators in the scheme have now been sentenced by the U.S. District Court for the Southern District of Texas, McAllen Division.

The investigation was a cooperative multi-agency effort involving several entities. The team included the U.S. Department of Labor (DOL), Office of Inspector General (OIG), Officer of Labor Racketeering and Fraud Investigations Dallas, U.S. postal inspectors in McAllen, Hidalgo County Sheriff’s Department, and Hidalgo Police Department.

As part of the investigation, DOL and OIG conducted an undercover purchase of a UI claim from Gonzalez. This led to a subsequent raid on the defendant’s home. The TWC assisted in identifying the fraudulent unemployment claims.