N.J. woman's jobless scam took in $345K

TRENTON, N.J. — A Beachwood woman posed as 24 different people of her tax-preparation business — none of whom were ever employees — to fraudulently collect $345,213 in unemployment benefits over a nearly three-year period, authorities said.

On Monday, Erica Rivera pleaded guilty to second-degree theft by deception.

Rivera, 35, who formerly owned Compassionate Financial Services, filed online benefits applications for 24 people, including previous clients, relatives and acquaintances, and received 27 unemployment insurance claims, said New Jersey Attorney General Christopher Porrino.

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From September 2012 to June 2015, Rivera collected 521 benefit payments totaling $345,213. Rivera is scheduled for sentencing Dec. 2, Porrino said. Under the terms of the plea agreement prosecutors will recommend an eight-year prison term. She must also pay back the money.

The victims of Rivera's identity theft didn't know their personal information was being used to further Rivera's scheme, Porrino said. But Rivera posed as a slew of people every week to various agencies, including the state Labor Department, to certify her eligibility to renew benefits.

The setup tickled the suspicions of the state's Department of Labor and Workforce Developments, Porrino said. It investigated in collaboration with the Philadelphia Police Department, Pennsylvania Attorney General's Office and the Inspector General's Office of the U.S. Department of Labor.

Unemployment beneficiaries collect benefits through government-issued debit cards, Porrino said, and surveillance cameras at ATM locations in Pennsylvania, New Jersey and Washington, D.C., recorded Rivera using several debit cards to withdraw money.

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“Rivera was systematic in her scheme to steal unemployment benefits from the state, but she learned that the state is even more systematic in rooting out fraud,” Porrino said in a statement.

In a five-year span, the Department of Labor aggressively sought out perpetrators of insurance fraud, saving the New Jersey Unemployment Insurance Trust Fund around $750 million, Porrino said.

"We’ll continue to work with the Department of Labor to put swindlers like Rivera in prison and protect this vital safety net for New Jersey’s workers," Porrino said.

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