A 53-year-old federal railroad employee from Katy, Texas, has agreed to pay $24,000 to resolve allegations of fraudulently claiming unemployment benefits during the COVID-19 pandemic. U.S. Attorney Nicholas J. Ganjei announced the settlement, which resolves potential violations of the Railroad Unemployment Insurance Act.
According to the U.S. Attorney’s Office, Chad Gillingwater allegedly submitted false claims for federal unemployment benefits between April 20, 2020, and August 27, 2021.
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The investigation revealed that Gillingwater was not entitled to these benefits because he was simultaneously receiving state unemployment benefits and/or paid leave from his employer.
In addition to the standard unemployment benefits, Gillingwater also received supplemental benefits provided under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
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The CARES Act extended unemployment insurance benefits to railroad workers who were impacted by the pandemic. The government alleged that Gillingwater’s receipt of these benefits, while also receiving other forms of compensation, constituted fraudulent activity.
The U.S. Attorney’s Office conducted the investigation with assistance from the Railroad Retirement Board – Office of Inspector General. The case was handled by Assistant U.S. Attorney (AUSA) Michelle Luong.
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