Newark --- Acting Essex County Prosecutor Carolyn A. Murray announced today that Ricardo Santiago, aka Arcadio Santiago, 32, of Union City was sentenced to 9 years in New Jersey state prison by the Honorable John I. Gizzo, Judge of the Superior Court, for his role in a scheme to bilk the state of more than $200,000 in underemployment funds.
Santiago pled guilty to second degree theft by deception on December 21, 2015
Assistant Prosecutor Deborah Freier, who handled the case, said, “The New Jersey unemployment insurance program is intended to act as a financial safety net for workers who have a legitimate need for those benefits. Every dollar stolen by people like the defendant threatens the viability of these important programs. It is our hope that this case will send a clear message that individuals who defraud state benefit systems will face significant prison sentences.”
Santiago’s guilty plea arose from a joint investigation conducted by the Essex County Prosecutor’s Office, the U.S. Department of Labor, Office of Inspector General (DOL-OIG), and the New Jersey Department of Labor and Workforce Development (NJLWD).
The investigation revealed that between January 2013 and February 2015, Santiago filed and/or facilitated the filing of numerous fraudulent unemployment insurance (UI) claims with NJLWD for purported former employees of two different New Jersey based businesses.
In addition to being involved with the submission of these UI claims, Santiago also made claims payable by reporting false wages to NJLWD on behalf of the businesses. Some of these fraudulent claims were supported by false documents that Santiago manufactured, including letters, Forms W-2, and paystubs, which he then submitted to NJLWD.
In other instances, Santiago built claims by submitting documentation reporting the bogus wages to the State of New Jersey. Santiago completed the necessary periodic internet certifications required to trigger the release of monetary benefits. In many cases, Santiago directed that these benefits be deposited into financial accounts in the identities of other individuals, which he controlled. Santiago's fraudulent activity resulted in a loss to NJLWD of $219,424, which he was ordered to repay.
Acting Prosecutor Murray thanked Special Agents from DOL-OIG, under the leadership of Acting Special Agent in Charge Jonathan Mellone, and Investigators from NJLWD, under the leadership of Commissioner Harold Wirths, for their efforts in bringing this case.