A Sherman Oaks man was arrested Monday on federal charges in Sacramento that he participated in ripping off the state for more than $2.5 million in unemployment benefits.
In a grand jury indictment returned July 9 and unsealed Monday, Kyn Naope, 39, is accused of involvement – from January 2008 to March 2011 – in registering fictitious employers with the California Employment Development Department and then recruiting individuals to pose as laid-off employees of those companies. The fake employees then filed for and collected unemployment insurance benefits based on the wages reported to the EDD by the fictitious employers, according to the indictment.
This is the third indictment in Sacramento federal court to result from the same investigation. A pending 20-count indictment charges Kenneth Parks, Michael Taylor Sr. and three others with involvement in the scheme. Parks pleaded guilty and was sentenced to five years in prison. Taylor pleaded guilty and is awaiting sentencing. Another indictment charged Donye Marcel Mitchell Sr. with taking part in plundering unemployment funds. He pleaded guilty and was sentenced to four years in prison.
Denny Walsh: 916-321-1189