Diane McKinny, Unemployment Benefits Scheme, North Carolina 2023

Diane McKinny, Unemployment Benefits Scheme, North Carolina 2023

ASHEVILLE, N.C. – Diane McKinny, 66, of Rutherfordton, N.C., was sentenced to three years of probation, ten months of which she will spend in home confinement, for her role in an unemployment benefits scheme while working as a payroll clerk and corporate secretary for Diverse Corporate Technologies, Inc. (DCT), announced U.S. Attorney Andrew Murray.

McKinny was found to have conspired with her co-conspirator, Marion “Kent” Covington, to defraud the State of North Carolina in an unemployment insurance (UI) fraud scheme by placing DCT’s employees on UI benefits while those employees continued to work at the business in excess of program eligibility requirements.

The scheme, which was orchestrated in late 2008, allowed DCT to reduce the cost-of-labor component of its cost-of-goods-sold, thereby increasing its net profitability. McKinny and Covington were found to have worked together to lay off nearly all of the employees of DCT in order to accomplish the scheme.

Mckinny and her co-conspirators were ordered to pay $466,960.30 as restitution, jointly and severally with Covington, Dr. Jerry Gross and Jason Lee Gross.

“Diane McKinny conspired with her co-defendant to defraud the State of North Carolina in an unemployment insurance (UI) fraud scheme by placing DCT’s employees on UI benefits while those employees continued to work at the business in excess of program eligibility requirements,” said Rafiq Ahmad, Special Agent-in-Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.

The investigation was conducted by Homeland Security Investigations, the Office of Inspector General of the Department of Labor, and the SBI. U.S. Attorney Murray praised the agencies for their outstanding work in investigating this matter.

Mckinny's crime and punishment are as follows: Defendant/Respondent: Diane McKinny; Exact Criminal Charges: Conspiracy to defraud the State of North Carolina in an unemployment insurance (UI) fraud scheme; City and State: Asheville, North Carolina; Exact Date: 2023; Sentence or Outcome: Three years of probation, ten months of which she will spend in home confinement; Dollar Amounts: $466,960.30 restitution.

Source: https://www.justice.gov/usao-wdnc/pr/us-attorney-announces-closing-investigation-after-last-defendant-involved-unemployment