Prosecutor: Unemployment fraud totaled $14 million

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Updated: 6/20/2014 7:32 pm

YUBA CITY, Calif. (AP) — Federal authorities say an unemployment scheme carried out in Northern California dating back to the early 1990s led to more than $14 million in fraudulent claims.

U.S. Attorney Benjamin Wager said two arrests made Friday bring to a total 28 people charged in the Sutter County case, and more are under investigation.

Wager says four Yuba City residents posed as farm labor contractors issuing fake paystubs to others who could then draw fraudulent unemployment claims and disability benefits.

Wager says at least one defendant wrote checks to supposed employees, instructing them to cash the check and return the money to give the appearance that he had paid them wages.

Wagner said those who led the scheme will likely end up in prison, and he urged others involved to come clean.

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