major case unit john dormin michelle martone executive director associate investigator office of...
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Major Case Unit
John Dormin Michelle Martone Executive Director Associate Investigator Office of Special investigations Office of Special Investigations(518) 457-7012 (518) 457-0206
Andrew M. Cuomo, Governor Colleen C. Gardner, Commissioner
Personal Personal Background:Background: 24 years with NYS Labor Investigation Experience:
• Wage and Hour Crimes
• Internal Misconduct
• Unemployment/Misclassified Workers
Managed New Hire Investigations Established Major Case Unit
Statewide investigation of complex fraud schemes
Data mining tool development
Analysis of large groups of data
Work directly with law enforcement and prosecutors
2011 Statistics (Staff of 3):
$3.8 million overpayments/millions saved
15 arrests
18 convictions
4 search warrants
Internet Protocol (IP):• Storage effective Dec 2010
• 5+ claims filed in one hour
• 5+ weekly certifications in one hour
• Detection of linked claims
• Foreign IP blocks
“HOT” Phone Numbers• VCC/Tel-service calls
Direct Deposit (DD) Accounts
• 3+ claims linked to same DD Account
• Query DD account to find links
Claimant Dashboard
Employer Dashboard
Wages Reported by ER Historical Wage Data Mass Fraud Detection
Claimant Dashboard
Ability to query single data fields
Provides comprehensive data
analysis
Efficiency vs. “Claimant Locator”
Hotline Tip Assistance
Employer Dashboard
Corporate Officer Detection
Address Analysis
Employer Dashboard
Wages Reported by ER#Sort Options: Name or SSN
Mass Fraud (detects those who return to work for base period ER
Ledger Payments and Wages Associated with Same Employer
Search by Phone Number
IP Queries
Query run by Social Security Number
Query run by IP Address
Parking & Security Services IncParking & Security Services Inc Joint case with USDOL-OIG/Manhattan
DA Large scale ID theft/UI fraud ring Utilized television and movie production
sets to “work” SS#s and then file UI claims
Ringleader’s side business employed “workers” off the books while on UI
Resulted in 10 convictions
Haverstraw/Dominican Republic Haverstraw/Dominican Republic ScamScam
Search warrant resulted in 30 debit cards seized
Over 100 claimants living out of country and receiving wired UI funds
Conviction of 3 defendants
Resulted in Operation 809/Foreign IP discovery
DD-214 FRAUD CASESDD-214 FRAUD CASES Joint cases with USDOL/DOD-OIG
NC/SC ex-cons filed 35 false UI claims $145,000 in 5 states (NY,NJ,NC,VT,TX)
Queens ex-Marine filed 7 false claims $75,000 theft
IP Query detection success
Fictitious Employer/False UI Claim Fictitious Employer/False UI Claim ScamScam
Joint case with USDOL-OIG
Creation of 3 fictitious businesses
Filing of 38 false UI claims totaling $278,000
Prosecuted by US Attorney- Southern District
2 convicted and will serve 24-36 months
BROOKLYN ID THEFT CASESBROOKLYN ID THEFT CASES
H & R Block employee stole ID’s and used to file 8 fraudulent UI claims
• Early detection and loss was only $7,500• Successful IP/phone number/address dumps
Brooklyn resident filed 9 false UI claims
utilizing close family member’s IDs
• $78,000 in stolen UI pending prosecution
Queens area phishing/UI fraud caseQueens area phishing/UI fraud case
“Phisher’s” phone number referred from Maine DOL
Phone number also found in NYSDOL query linked to active UI claim
UI/ER fraud detected and pending referral to USDOL
Albert Weathers Albert Weathers
Niagara Falls state employee certifying for prisoner IP address detection contributed to success
http://www.youtube.com/watch?v=fwQTHOcoSjU&feature=youtu.be
Sweep casesSweep cases Ability to query specific employer wages vs.
claims
Over 2.5 million dollars in claimant fraud detected from 3 employers
Federal employee wagesFederal employee wages Over $400,000 in USPS cases (pending)
NDNH files contain data used to query
New York State Major Case UnitNew York State Major Case Unit
Contact Info:
Michelle Martone M C U Supervisor/Associate Investigator
Office of Special Investigations (518) 457-0206
QUESTIONS ??QUESTIONS ????