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.
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesCalifornia Fire Updates (7.22.17)California Fire Updates 2017: 6,800+ firefighters Battling 8 large wildfires in California
Lake Tahoe's Most Stunning Beach is Sand Harbor State ParkIncline Village, NV - Destination: Sand Harbor State Park. Majestically set astride the California and Nevada borders, Lake Tahoe never fails to live up to its promise.
Off to the Races Food & Wine Tasting August 16thSACRAMENTO, CA - Celebrating 19 years, Race for the Arts' premiere event, Off to the Races Food & Wine Tasting, takes place on Saturday, August 16
Petaluma Music Festival set for August 5thPetaluma, California - This marks the tenth year for what has become one of the most highly regarded events on the West Coast summer music festival circuit
WINEderlust Renegade Wine Festival August 26thPLACERVILLE, CALIF. - El Dorado Winery Association is proud to present its first-annual celebration of renegades, rebels and rabble-rousers at the WINEderlust Renegade Wine Festival
Roseville Flash Crime Report (7.21.17)Digest summary update of Roseville police activity for the period covering July 6- 17, 2017.
John Adams Academy Expanding with Lincoln CampusLincoln, CA - Officials from John Adams Academy (JAA) charter school announced they have secured a site in Lincoln to house their public charter school program
WJU Athletics Sign Jaydon ClarkROCKLIN, Calif. - The Warriors men's basketball program led by head coach Lance Von Vogt welcome freshman Jaydon Clark to the 2017-18 recruiting class.
Santucci Memorial Golf Tournament slated for SeptemberRoseville, Calif., - The 14th annual Bill Santucci Memorial Golf Tournament will take place Friday, Sept. 29 at Sierra View Country Club in Roseville.
PlacerArts Presents the 24th Annual Auburn Art WalkAuburn, CA - The annual Auburn Art Walk presented by PlacerArts will take place on Friday, Aug. 4
Celebration for New Roseville Center for Sierra CollegeRoseville, Calif., - Sierra College invites the public to see its state-of-the-art classrooms and facilities at the new Roseville Center location in the heart of Roseville's Town Square
Paul Bancroft appointed to Sierra College BoardTruckee, CA -Kings Beach resident Paul Bancroft has been appointed to the Sierra College Board of Trustees. Bancroft will represent Area 2 and replaces Dave Ferrari who retired
NEWS: In Case You Missed It