Broken Arrow Man Bites Off More Than He Can Chew: $19K Theft

MUSKOGEE, OKLAHOMA – Bobby Gene Smith, 43, of Broken Arrow, Oklahoma, learned the hard way that stealing from the government isn’t a victimless crime. Smith was sentenced this week to three years of probation and slapped with a hefty $19,076.00 restitution order after admitting to pilfering funds from the Oklahoma Employment Security Commission.

The Eastern District of Oklahoma’s U.S. Attorney’s Office announced the sentencing, stemming from an investigation spearheaded by the Department of Labor’s Office of Inspector General. Smith initially pled guilty in March of 2014, but the case dragged on, finally culminating in a judgment handed down by District Judge Ronald A. White.

According to court documents, Smith engaged in the scheme between May 8, 2010, and May 7, 2011. The Information alleged Smith “willfully and knowingly embezzle[d], steal[ed] and convert[ed] to his own use” unemployment benefits he knew he wasn’t entitled to. The total value of the stolen funds exceeded $1,000, landing the crime squarely in federal jurisdiction.

Federal prosecutors detailed how Smith systematically defrauded the system, pocketing money intended to support those genuinely in need. While the specific methods weren’t detailed in the release, the sheer duration of the scheme – a full year – suggests a calculated and brazen attempt to exploit a vulnerable program.

Assistant U.S. Attorney Chris Wilson skillfully prosecuted the case, securing the conviction and ensuring Smith is held accountable for his actions. The restitution order aims to reimburse the Oklahoma Employment Security Commission for the stolen funds, though it remains to be seen how quickly Smith will fulfill his financial obligations.

This case serves as a stark reminder that even seemingly ‘small’ thefts of government funds carry significant consequences. The Department of Justice continues to prioritize the investigation and prosecution of those who seek to enrich themselves at the expense of taxpayers and legitimate benefit recipients. Smith’s three years of probation will be a constant reminder of that lesson.