Attorney General Letitia James announced Thursday the arrest of Troy resident Johnny Neal for filing false documents to claim nearly $17,000 in unemployment insurance benefits.
Neal applied for and collected unemployment funds even though he worked as a supervisor for the New York State Department of Taxation and Finance (DTF). In addition, he is accused of misusing his position at DTF to access confidential tax information outside the bounds of his official duties.
“Unemployment insurance benefits have been a crucial resource at a difficult time for many New Yorkers,” James said in a statement.
“By fraudulently collecting these benefits, Johnny Neal cheated taxpayers and stole from those who depend on unemployment payments. My office will ensure that anyone who commits fraud or violates the public trust will be held accountable to the fullest extent of the law,” he added.
To obtain unemployment insurance benefits, a potential beneficiary must verify that they are not working or working below the required number of hours. Once a potential beneficiary verifies their employment status, the New York State Department of Labor (DOL) determines if they are eligible for unemployment insurance payments and at what level.
James notes that on September 20, 2020, Neal applied for unemployment insurance benefits with the DOL and falsely claimed that he was not working and that his office was closed due to the COVID-19 pandemic. In fact, as a DTF employee, he continued to collect his taxpayer-funded salary during the pandemic.
According to the complaint, the defendant improperly collected more than $17,000 in unemployment payments. Additionally, Neal allegedly abused his position by improperly accessing confidential taxpayer information for family, friends, and acquaintances in an effort to assist them in their tax preparation process. Taxpayer information is confidential and may only be accessed for legitimate purposes consistent with New York State’s responsibilities to collect and collect taxes.
Neal was arraigned Thursday before Albany City Court Judge Holly Trexler in Albany County Court on one count of grand theft in the third degree (a class D felony), in violation of the Law. Criminal §155.35, and violation of the confidentiality provisions of Tax Law § 1825 (a class A misdemeanor).
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