SAN FRANCISCO - On November 8, 2019, Kenneth X. Huang, 41, is scheduled to begin serving a two years prison sentence, followed by three years supervised release for committing unemployment insurance fraud. He has also been ordered to pay $259, 594 in restitution.
A joint investigation by the California Department of Insurance, Employment Development Department and U.S. Department of State, Diplomatic Security Service (DSS) 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.
“This investigation involved state and federal law enforcement officers and was very complex,” said California Statewide Law Enforcement Association (CSLEA) President Alan Barcelona. “Fortunately they were able to put a stop to this man’s criminal activity.”
A consumer can purchase supplemental unemployment insurance to replace a portion of the income lost due to unemployment. These policies typically require the policyholder to be employed by a company for at least six months before purchasing the policy, and the individual must maintain their employment during the first six months that they own the policy before they can collect any benefits.
According to Department of Insurance detectives, Huang lied about material information in order to secure 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 where he never worked.
“Partnering with insurance companies, state departments and the Diplomatic Security Service, allowed us to stop a complex fraud scheme in its tracks,” said Insurance Commissioner Ricardo Lara. “Without our detectives’ actions in unraveling this fraud, the costs could have been much higher.”
The restitution order included $128,753 to Great American Insurance Company doing business as IncomeAssure and $130,841 to the California Employment Development Department.
Huang fled to Georgia after being indicted on federal charges in January. DSS special agents tracked and apprehended him there.