Roseville Man Charged in Employment Fraud Case
SACRAMENTO, Calif. - Three of nine defendants were arrested today in a continuing investigation into a fraudulent unemployment and disability benefits scheme based out of Sutter County, United States Attorney Benjamin B. Wagner announced. Balkar Singh, 50; Harvinder Kaur, 37; and Harjinder Kaur Thandi, 34, all of Yuba City, will be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Dale A. Drozd.
In a 36-count indictment that was unsealed today, a federal grand jury charged nine defendants with participating in a scheme to defraud the State of California of unemployment and disability benefits. The remaining defendants: Jit Kaur, 62; Daljit Kaur Sangha, 41; Sukhwinder Kaur, 54; Darshan Rani, 44, all of Yuba City; Avtar Kaur Bains, 73, of Roseville; and Mo Pegany, 56, of Ceres, will appear in court at a later date.
"Fraud against the employer-funded Unemployment Insurance program or the employee-funded Disability Insurance program costs all of us and will not be tolerated," said Pam Harris, Director of the California Employment Development Department (EDD). "EDD's investigators are committed to detecting and deterring fraud to protect the integrity of these vital programs, which are meant to benefit hardworking Californians and businesses."
This is the third indictment in an ongoing investigation. Six defendants were indicted in May 2012, and six others were indicted in September 2012.
According to the first indictment, Mohammad Nawaz Khan, 56; Mohammad Adnan Khan, 31; Iqila Begum Khan, 31, all of Live Oak, and Mohammad Shahbaz Khan 56, of Yuba City, controlled a series of companies that were reported to the Employment Development Department as farm labor contractors. The Khans sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. The Khans at times instructed the purchasers how the fake paystubs could be used to fraudulently claim unemployment and disability benefits. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $5 million.
According to the new indictment, Jit Kaur, Bains, Sangha, Pegany, Singh, Harvinder Kaur, Thandi, Sukhwinder Kaur, and Rani purchased pay stubs that falsely showed they had been paid wages by companies controlled by the Khans. The defendants would then use that pay stub to file for unemployment benefits, disability benefits, or both. According to the indictment, the defendants purchased pay stubs for approximately $250 for every $1,000 in wages. They would use those fraudulent obtained wages to file for unemployment insurance, disability insurance, or both.
This case is the product of a joint investigation by the Federal Bureau of Investigation, the Department of Labor, Office of Inspector General, and the Employment Development Department, Investigations Division. Assistant United States Attorney Jared Dolan is prosecuting the case.
If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
The charges are only allegations, and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Print This Article
Placer County News HeadlinesBig DoG Countdown: KidsFirstBig DoG Countdown: Learn about how KidsFirst impacts your community.
End of Life Planning: A Difficult Subject for ManyIt is often difficult to imagine your end of life care-or end of life care for a loved one-in the event you or your loved one becomes incapable of making health care decisions.
STEM Collaborative Teaches Critical ThinkingAt the final session of the Sierra College STEM Collaborative ACTivATE nine-month professional development program on teaching applied critical thinking, Sierra College and high school instructors reported
Northern California National Day of Prayer BreakfastThis year's keynote speaker is atheist-turned-Christian Lee Strobel, the former award-winning legal editor of The Chicago Tribune. He is a New York Times best-selling author of more than twenty books
Irrigation Workshop Helps Landowners and AG ProducersAUBURN, Calif. - More than 25 ag producers and landowners from Placer County participated in an irrigation workshop recently hosted by the Placer Resource Conservation District (RCD).
Justice Center in Roseville Refinancing Boosts County RatingPlacer County earned a significant savings and a higher credit rating recently when it refinanced municipal bonds originally issued to help finance construction of buildings in North Auburn and Roseville
Big DoG Countdown: Placer Food BankBig DoG Countdown: Learn about how Placer Food Bank impacts your community.
Featured Rocklin Student: Sierra GarridoRocklin, CA - Sierra Garrido, a member of Rocklin High's Class of 2015 Honor Guard, balances her vigorous academic schedule, time with the dance team, and volunteer projects. Sierra is
Seeking Grants for Ophir Gardens Vulnerable Water SupplyDrought Watch: Directors of the Placer County Water Agency on Thursday (Apr. 10) agreed to apply for two emergency funding grants, each up to $500,000, to improve water supplies for a small community
Free Soccer Camp in Roseville for Kids Ages 8- 13The Roseville Police Activities League and Folsom Police Activities League will be hosting a free two-day soccer camp on April 15- 16, 2014.
$45,000 Raised for Child Abuse PreventionIt was a "Blue Tie Affair" on a recent Thursday in Roseville, as more than 200 people gathered for KidsFirst's 16th annual luncheon, celebrating their 25th commemorative anniversary and kick-off their community-wide campaign to end child abuse
Big DoG Countdown: WarmLine Family Resource CenterBig DOG Countdown: Learn about how WarmLine Family Resource Center impacts your community.