Alan Neal Scott, Unemployment Insurance Scam, Massachusetts 2021

A Melrose man has pleaded guilty to his role in a massive unemployment insurance fraud scheme, which spanned six years and saw him submit numerous fraudulent claims to the Massachusetts Department of Unemployment Assistance (DUA).

Alan Neal Scott, 68, pleaded guilty to four counts of mail fraud, one count of wire fraud, and five counts of aggravated identity theft in connection with his scheme. This occurred on Thursday, July 1, 2021 in U.S. District Court.

According to court documents, Scott submitted fraudulent unemployment insurance claims to the DUA using his own identity as well as the identities of various individuals, including some who were not eligible for unemployment benefits as they were incarcerated at the time. The claims all reported prior employment at a non-operational Massachusetts-based business associated with Scott.

As a result of these fraudulent claims, the DUA sent unemployment benefits funds to several addresses connected to Scott and deposited funds into accounts he controlled. Scott also submitted fraudulent pandemic unemployment insurance claims in the names of others.

The charges of mail and wire fraud carry a sentence of up to 20 years in prison, three years of supervised release, and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The aggravated identity theft charges carry a mandatory sentence of two years in prison to be served consecutive to any other sentence imposed, up to one year of supervised release, and a fine of $250,000.

U.S. District Court Judge Leo T. Sorokin scheduled sentencing for October 12, 2021. Scott was indicted in August 2020.

The case was investigated by the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation, Homeland Security Investigations in Boston, U.S. Postal Inspection Service, and the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division, with assistance from the Commonwealth of Massachusetts, Department of Unemployment Assistance, Program Integrity Unit. Assistant U.S. Attorney Sara Miron Bloom of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

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