Scranton Brothers Charged in $150K Unemployment Fraud Scheme

Scranton brothers Samuel Borgia, 52, and Steven Borgia, 46, are facing federal charges in a $150,000 unemployment benefits fraud scheme tied to their now-defunct home improvement company, Home Resource Corporation. The pair, who owned and operated the Scranton-based business, allegedly orchestrated a years-long scam from 2009 to 2012, filing false claims to collect benefits they were never entitled to.

Federal prosecutors say the Borgias didn’t stop at cheating the system for themselves. They allegedly pressured employees to falsely report to the Pennsylvania Department of Labor that they were unemployed—while still working on the books—so they too could pocket unemployment cash. The scheme funneled more than $150,000 in taxpayer dollars into the pockets of the defendants and their co-conspirators, according to a criminal information filed in U.S. District Court in Scranton.

The charges, which include conspiracy to commit wire fraud, come after a joint investigation by the U.S. Department of Labor’s Office of the Inspector General and Pennsylvania’s Department of Labor. The case is being handled by Assistant United States Attorney Evan Gotlob, who laid out the evidence showing a coordinated effort to exploit a system meant to aid the truly jobless.

Both men have signed plea agreements admitting guilt, documents show—though the deals are still pending court approval. When they appear for arraignment, the Borgias are expected to enter guilty pleas, cutting short a trial but not avoiding sentencing. Their cooperation, if any, has not been disclosed.

If convicted, each faces up to five years in federal prison, a $250,000 fine, and a mandatory term of supervised release. But under the Federal Sentencing Guidelines, the final sentence will weigh factors like criminal history, the severity of the offense, and the need for deterrence. The statutory max is just a starting point—real punishment could vary.

As of now, the Borgias remain presumed innocent under federal law. But the case sends a warning to business owners tempted to game the safety net: federal and state watchdogs are watching. The fallout from the scheme could reverberate through Scranton’s small business community for years to come.