A California Department of Insurance, Employment Development Department and U.S. Department of State, Diplomatic Security Service investigation that uncovered a complex unemployment insurance fraud scheme has now led to prison time on federal charges for the man who perpetrated the crimes.
Kenneth X. Huang, 41, of San Francisco, Calif., was federally indicted on six federal charges related to his insurance fraud schemes and pleaded guilty to one federal charge of wire fraud. Huang is facing two years in federal prison, three years supervised release, and as part of his plea agreement agreed to pay $259,594 in restitution for his crimes.
The investigation reportedly revealed that Huang used a false passport, Social Security card and fabricated proof of employment documents in order to obtain multiple insurance policies, each under a different name—then bided his time before submitting fraudulent claims in order to meet the eligibility requirements of the policies and to escape detection. In total, he received $128,753 from his fraudulent insurance policies.
Supplemental unemployment insurance can be purchased to replace a portion of a person’s income in the event that they lose their job. These policies typically require the policyholder to be employed by a company for at least six months before purchasing the policy and the individual is required to maintain their employment during the first six months that they own the policy before they can collect any benefits.
According to CDI detectives, Huang lied about material information in order to secure multiple different IncomeAssure policies, under multiple different identities. Examples of Huang’s deception include providing false names, altering notarized documents, misrepresenting the times of employment, and submitting completely forged documents from companies he was never employed by.
Huang fled to Georgia after being indicted on federal charges in January. He was tracked and apprehended in Georgia by DSS special agents, and booked into Gwinnett County Jail before being extradited back to California.
Topics California Fraud
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