Press Release  Maryland Woman and Her Company Indicted for Failing to Pay Unemployment Contributions

Boston — The president and owner of a Maryland-based temporary staffing company has been indicted on charges of unemployment fraud in connection with allegedly failing to pay unemployment insurance contributions to the Department of Unemployment Assistance, Attorney General Maura Healey announced today.

Armentha Cruise, 73, of Takoma Park, Maryland, and her company, The Aspen Group, Inc. (Aspen), of Silver Spring, Maryland, were indicted Monday by a Suffolk County Grand Jury on charges of Unemployment Fraud. The arraignment is scheduled for August 8 in Suffolk Superior Court.

"Businesses that fail to pay into the unemployment insurance program are shortchanging the workers who have lost their jobs and rely on the system for assistance while getting back on their feet,” said AG Healey. “We allege these defendants failed to pay into the system and put an unfair burden on those businesses that do comply with the law.”

This investigation was referred to the Attorney General’s Office by the Executive Office of Labor and Workforce Development’s Department of Unemployment Assistance (EOLWD/DUA).

“All employers in the Commonwealth must make their full contributions to the Unemployment Insurance Trust Fund. Once we identified that The Aspen Group Inc. had not made full payments, our Program Integrity Department notified the Attorney General’s office immediately,” Robert Cunningham, director of the DUA said. “Our department works aggressively with the Attorney General’s office to recover any money owed to the UI Trust Fund. An employer who fails to pay is defrauding not only the system, but the other employers who pay their full share.”

An investigation revealed that Cruise, as president and sole owner of Aspen, allegedly failed to pay full contributions between the second quarter of 2010 and the second quarter of 2015.

Authorities allege that Cruise and Aspen owe the DUA $312,514.51 in unpaid contributions. Since 2010, the DUA has paid out more than $957,250 in claims made against the unemployment fund to Aspen employees.

The DUA provides temporary assistance to unemployed workers through the Unemployment Insurance (UI) program, which is funded by employer contributions. Private employers like Aspen are required to pay quarterly contributions into the trust fund based on the number of workers they employ and how often their workers have accessed UI benefits, among other factors.  Aspen registered with the DUA in 2003 confirming that it was in business and paying wages in Massachusetts.

The DUA’s Program Integrity Department focuses on the prevention, detection and the investigation of those who defraud or attempt to defraud the unemployment insurance program. Once fraud is detected, the Program Integrity Department works aggressively with the Attorney General’s office and other agencies to recover money owed to the UI Trust Fund.

AG Healey’s Insurance and Unemployment Fraud Unit works to protect consumers and the integrity of the insurance system by investigating and prosecuting those who commit fraud against all types of insurers, including the state’s unemployment insurance and workers’ compensation systems.

To report unemployment fraud call the EOLWD/DUA’s Fraud Hotline @ 1-800-354-9927 or visit: http://www.mass.gov/lwd/ui-fraud anytime, 24 hours a day. Callers may remain anonymous.

This case was handled by Assistant Attorney General Geoffrey Wood of AG Healey’s Insurance and Unemployment Fraud Unit with assistance from Senior Investigator Philip Mantyla, also of AG Healey’s Insurance and Unemployment Fraud Unit, and investigators from the DUA.

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