Unemployment insurance fraud payments given to NY counties

May 1, 2013

Unemployment insurance fraud payments given to NY counties

During the recession, many nonprofit and government organizations were faced with the need to let staff members go to make ends meet financially. As the economy picks up, these entities are regaining their footing, and many are looking to make wiser choices when it comes to paying off costs associated with unemployment requirements, such as fees associated with taxes.

Something these organizations should be aware of is the high prevalence of insurance fraud, which recently proved to be a major problem for several counties in New York.

Last year, the New York Department of Labor worked with the state district attorney's offices to prosecute phony unemployment insurance claims and returned nearly $2 million to the unemployment insurance trust fund.

Counties throughout New York received major unemployment insurance fraud returns this week. Orange County saw the largest amount, as it was given roughly $178,000. Queens County saw the second largest payout, worth almost $153,600, and Monroe County came in third with a little more than $134,700, according to Rochester Business Journal.

Governor Andrew Cuomo called unemployment insurance fraud an necessary cost-driver for honest employers that puts the benefits of legitimate claim-filers at risk.

"Such criminal activity should be prosecuted to the fullest extent of the law, and I applaud our local partners who pursue these cases for their vital help in returning these stolen funds back to the Unemployment Insurance Trust Fund," Cuomo said.

Monroe County District Attorney Sandra Doorley added that these cases often get overlooked in a world where violent crime receives most of the media attention. 

Fraudulent unemployment insurance claims are a major burden on local governments involved. While the New York counties received payment returns, these crimes are time- and resource-consuming for organization leadership.

Working with an insurance provider that can tailor to an entity's specific needs can help nonprofit managers rest easy.


Ready to chat?
Get in touch today to request a no-obligation savings evaluation.


We first started using First Nonprofit’s Unemployment Savings Program when we were a small startup nonprofit.  We didn’t have an HR department and needed expertise in the event that an unemployment claim was made.  We knew we were eligible to be a reimbursing employer, but weren’t sure how to navigate that process.  They made it easy to set things up, plan for, and then manage claims when they came at a very reasonable cost. The amount of time and stress they’ve saved us dealing with all this has been worth way more than the cost.  We’ve now grown to a large nonprofit and do have an HR department but have no plans to stop using their services.  I highly recommend them to every nonprofit I come into contact with!


Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Prevent Blindness America, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools, Chicago, IL

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios.

Thresholds, Chicago, IL

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

Visually Impaired Preschool Services has been a client of First Non-Profit since it was first offered as a benefit of VisionServe Alliance. We completed a thorough evaluation of cash savings to our agency before taking advantage of this wonderful benefit and it has been a very wise decision. Our experience with the processes from accounting to claims have been professional, expeditious and easy.

Visually Impaired Preschool Services, Louisville, KY

Luckily for us, our interactions regarding any issues with staffing has been very minimal! I can say that all other interactions with regards to billing, 941 reporting, etc. have been extremely pleasant, accommodating and easy to work with. Kim Ghanayem is always prompt, professional and friendly. Thank you so much!

Neurologic Music Therapy Services of Arizona, Phoenix, AZ

First Nonprofit has been easy to work with and makes the administrative process easier and smoother. We enjoy working with you.

Visually Impaired Preschool Services, Louisville, KY