For Immediate Release - July 02, 2009

Lynn Man Pleads Guilty, Sentenced for Collecting Over $16,000 in Unemployment Benefits While Working

BOSTON - Today, a Lynn man pled guilty in Suffolk Superior Court to charges he schemed to collect over $16,000 in unemployment benefits while continuing to work. Gary Gaglione, age 43, pled guilty to charges of Unemployment Fraud (28 counts), and Larceny Over $250. Following the change of plea, Suffolk Superior Court Judge Carol Ball sentenced Gaglione to two years probation and ordered him to pay restitution in the amount of $16,128.

Gaglione applied for unemployment benefits from the Executive Office of Labor and Workforce Development's Division of Unemployment Assistance (EOLWD\DUA) in November 2005 while separated from his employer and began receiving benefits from November 2005 through May 2006. During this time, Gaglione was working full-time for a chauffeur service and failed to disclose his employment status to EOLWD\DUA.

For each of the 28 weeks that Gaglione collected unemployment benefits from November 2005 through May 2006, he notified the EOLWD\DUA that he was not working, but that he was able to work and was available for work. The fraudulent activities were initially detected by investigators from the EOLWD\DUA. Gaglione collected fraudulent benefits totaling $16,128 while working and collecting.

Indictments were returned against Gaglione on March 5, 2009. Gaglione was arraigned on March 26, 2009, in Suffolk Superior Court at which time he entered a plea of not guilty and was released on personal recognizance. Today, Gaglione entered a change of plea in Suffolk Superior Court and was sentenced. After sentencing, Gaglione paid $8,000 of the restitution. He is expected to pay the remaining $8,128 at a later date.

To report unemployment fraud to the EOLWD\DUA, call the agency's toll free fraud hotline at 1-800-354-9927 anytime, 24 hours a day. Callers may remain anonymous.

Assistant Attorney General Stephen Adams of Attorney General Martha Coakley's Insurance and Unemployment Fraud Division prosecuted this case with assistance from investigator Pepper Daigler of the Attorney General's Office and Mark St. Onge of EOLWD\DUA.