Two-year sentences for women in unemployment fraud schemes

rant behavior,” the attorney wrote of her role in the fraud. “As an individual without a criminal history, she had no history of defrauding anyone and certainly not any other government institution.”

Roque asked that she not be incarerated.

The organizers of the schemes were members of the Khan family and included Mohammad Nawaz Khan, Mohammad Adnan Khan, Mohammad Shahbaz Khan and Mohammad Riaz Khan. The organizers set up a series of farm labor contracting businesses that purported to provide labor to harvest crops in Sutter and Yuba Counties.

The case against Johal and Kaur is part of a series of cases involving the Khan family’s fraud schemes. Over the course of these related conspiracies, the Khans reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits.

The fraud schemes defrauded the California Employment Development Department of more than $14 million. To date, 26 individuals have been convicted of various offenses related to the schemes.

The organizers sold fraudulent paystubs to other people, including the defendants, and reported false wages to the Employment Development Department.

The purchasers of the paystubs would subsequently file for unemployment or disability benefits with the EDD based upon the fictitious wages. Because the amount of the benefits that the EDD pays is based upon the claimant’s prior earnings, the participants would pay the Khans to report high wages to the EDD.

In 2014, Johal and Kaur were subpoenaed to testify before a federal grand jury investigating the fraud scheme. During their testimony, when questioned about their wages, they falsely stated under oath that they picked peaches for Ray Khan and that they did not commit fraud, prosecutors said.

Both defendants claimed they had picked peaches for Ray Khan for at least eight hours a day, six days a week, during the summer months of June through September. Both defendants also claimed that they worked on other tasks in the orchards for hours every day after picking peaches.

Testimony from individuals with knowledge of Ray Khan’s real employees established that he did not employ the defendants. Further, evidence presented at trial showed the defendants had reported chronic back and knee problems in prior disability claims with the EDD and were not capable of doing the physically intensive work required by peach picking.

Finally, evidence at trial established that the defendants purchased paystubs from Ray Khan so that he would report falsely inflated wages to the EDD, which the defendants could then use to claim the maximum possible amount of unemployment benefits.

Both defendants had participated in previous fraud schemes with other Khan family members and had already claimed benefits in excess of $30,000 each, prosecutors said.

In Friday’s A5 story “Water Agency OKs tentative budget,” an expenditure was cited incorrectly. The administrative costs associated with power systems are $4.3 million. The $24.5 million is total operating expenses, which also includes $18.4 million in maintenance expenses for the agency’s power systems. Marysville office, 1530 Ellis Lake Drive Business hours: Monday-Friday, 8 a.m.-5 p.m.

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