Edgemont Man Caught in Unemployment Benefits Scam

Terry Beard, 48, of Edgemont, South Dakota, has been caught in a brazen scam to defraud the government out of $40,000 in unemployment benefits. According to a settlement agreement reached on May 27, 2014, Beard knowingly submitted 23 false claim forms to the U.S. Railroad Board (RRB) while employed by the City of Edgemont, from March 2009 through January 2010.

Beard, a former conductor for the Burlington Northern Railroad, was laid off in December 2008, but instead of seeking honest work, he opted to file false claims for unemployment benefits. His scheme was only uncovered after the U.S. Railroad Retirement Board launched an investigation, which led to a civil action being brought against him in April 2014.

The False Claims Act (FCA) imposes severe penalties on individuals who knowingly submit false claims to the government. Under the FCA, Beard was liable for a civil penalty of not less than $5,500 and not more than $11,000 for each false claim, plus three times the amount of damages sustained by the government. The total penalty in this case was $40,000.

In addition to the civil settlement, Beard was also indicted by a grand jury and pleaded guilty to making a false claim pursuant to 18 U.S.C. § 287, a felony. He was sentenced to a term of 5 years’ probation and ordered to pay restitution in the amount of $12,407.00 on October 23, 2013.

The U.S. Attorney’s Office places a high priority on criminal and civil enforcement in cases involving all types of fraud committed against the government. In this case, former Assistant U.S. Attorney Wayne Venhuizen and Assistant U.S. Attorney Cheryl Schrempp DuPris prosecuted the criminal and civil cases, respectively.

The investigation in this case serves as a stark reminder that the government will not tolerate individuals who seek to cheat the system and defraud taxpayers. The U.S. Railroad Retirement Board’s diligent work in uncovering Beard’s scheme has brought him to justice and recovered a significant amount of money for the government.

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