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LA Man Caught in $2.5 Million Unemployment Scam
A 39-year-old Sherman Oaks man was arrested today for participating in a massive unemployment fraud scheme that cost over $2.5 million, United States Attorney Benjamin B. Wagner announced.
Kyn K. Naope, 39, was taken into custody for his alleged role in the scheme, which involved registering fictitious employers with the California Employment Development Department (EDD) and recruiting others to pose as laid-off employees.
Between January 2008 and March 2011, Naope and his co-conspirators allegedly registered fake employers with the EDD and then convinced others to file for and collect unemployment insurance benefits based on the wages reported by the fictitious companies.
This is the third indictment brought as part of the investigation into the scheme, which has already seen two other defendants plead guilty and face prison time. Kenneth Parks, who pleaded guilty and was sentenced to five years in prison, and Michael Taylor Sr., who is awaiting sentencing, were both charged in a separate indictment.
Naope’s case is not the only one to come out of this investigation, as Donye Marcel Mitchell Sr. was sentenced to four years in prison for his involvement in the scheme.
Naope faces a maximum statutory penalty of 20 years in prison and a $250,000 fine if convicted. However, any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.
The investigation into the scheme was led by the United States Department of Labor, Office of Inspector General and California EDD – Criminal Investigations Division. Assistant United States Attorney Jared C. Dolan is prosecuting the case.
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Key Facts
- State: California
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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