Alleged $700K Unemployment Scheme Ensnares Some

(Editor's note: the name of the "couple" mentioned below has been redacted as Patch has received proof of the expungement of their records.)

A couple from Morris Plains were involved in their son-in-law’s alleged scheme to defraud the state of almost $694,606 by filing 36 false claims for unemployment benefits, according to acting Attorney General John J. Hoffman.

The couple was charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering.

Their son-in-law, Todd P. Halpern, 48, of Livingston, orchestrated the scheme with 14 co-defendants from October 2008 to May 2012, Hoffman said. Halpern, an accountant, allegedly filed claims using identities stolen from clients, and filed fraudulent employment records in the names of businesses he served in order to support the claims, Hoffman said.

“To satisfy his greed, Todd Halpern allegedly stole the identities of his clients and fraudulently collected hundreds of thousands of dollars in unemployment benefits,” said Hoffman. “The alleged thefts committed by this con artist and his co-defendants constitute an affront to honest, hardworking New Jersey residents, who pay into the unemployment insurance fund with their employers and who count on benefits being available as a safety net if they lose their jobs.”

Halpern was charged with money laundering, conspiracy and identity theft.

On June 5, Halpern, who ran a tax preparation business in recent years, pleaded guilty to federal charges of tax and wire fraud. The U.S. Attorney’s Office for the District of New Jersey charged Halpern with filing 657 fraudulent federal income tax returns and collecting $373,938 in fraudulent tax refunds. He faces a federal prison sentence and is awaiting sentencing in U.S. District Court.

The following is a full list of the 15 defendants charged by indictment or accusation:

1. Todd P. Halpern, 48, of Livingston: charged with money laundering, conspiracy and identity theft;
2. George J. Halpern, 74, of Short Hills: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
3. (unnamed) was charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
4. (unnamed) was charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
5. David Altman, 42, of Monsey: charged with conspiracy, theft by deception and money laundering, all in the second degree;
6. Manuel Cruz, 28, of Union City: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
7. Henry Ford, 54, of Plainfield: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
8. Dario Gomez, 43, of Newark: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
9. Augustin Gomez, 29, of Jersey City: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
10. Alexis Leguizamon, 41, of Jersey City: charged on June 5 by accusation with two counts each of third-degree theft by deception; admitted into the Pre-Trial Intervention Program;
11. Garry Lloyd, 58, of Williamstown: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
12. Andres Lopez III, 41, of Lyndhurst: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
13. Osiris Perez, 44, of Bronx, N.Y.: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering;
14. Chalin E. Romero, 24, of Union City: charged on June 5 by accusation with two counts each of third-degree theft by deception; admitted into the Pre-Trial Intervention Program;
15. Edgard Torres, 49, of North Bergen: charged with second-degree conspiracy and third-degree counts of theft by deception and money laundering.

Halpern is charged in connection with all but three of the 36 false claims. A total of 17 fraudulent claims were allegedly filed in the names of defendants. No claim was filed in the name of Todd Halpern, but claims were filed in the names of each of the other 14 defendants, with the exception of one member of the couple. (Two claims were filed in the name of George Halpern, two were filed in the name of Leguizamon, and two were filed in the name of Chalin Romero. In addition, claims were filed using Altman’s name as well as the name of his wife.)

The remaining 19 claims were allegedly filed using stolen identities and Social Security numbers, including identities of many former clients of Todd or his father George Halpern, Hoffman said. A number of the co-defendants were also clients of Todd and George Halpern.

The defendants allegedly used nine different businesses as employers in creating false WR-30 wage records that were filed with the state to back up the unemployment insurance claims, Hoffman said.

The amount of unemployment benefits collected on each of the fraudulent claims ranged from $1,752 to $51,000, with the average being $19,295. In nearly all instances, the proceeds from the claims filed using stolen identities allegedly went by direct deposit or check into bank accounts controlled by Halpern, Hoffman said. Funds from two of those claims allegedly went to Altman. The benefits paid on the claims filed in the names of other defendants typically went to the defendants by direct deposit, check or debit card mailed to their addresses, Hoffman said.