A.G. Schneiderman Announces Arraignment Of Rensselaer County Legislative Chairman Charged With Stealing $15,000 In Unemployment Insurance Benefits

Attorney General Eric T. Schneiderman recently announced the arraignment of Martin T. Reid, the Chairman of the Rensselaer County Legislature, on charges of Grand Larceny in the Third Degree and Offering a False Instrument for Filing in the First Degree, stemming from Reid’s allegedly improper receipt of unemployment insurance benefits.

“Unemployment insurance benefits exist to protect hardworking New Yorkers who suddenly find themselves without a job, not to fatten the wallets of those who are already gainfully employed,” Attorney General Schneiderman said. “My office will continue working with the Department of Labor to root out fraud and hold accountable anyone who fraudulently obtains unemployment insurance benefits by lying about their employment status.”

According to the indictment and documents filed with the court at arraignment, between February 2013 and November 2013, Reid collected more than $15,000 in unemployment insurance benefits after he resigned from the New York State School Boards Association in the face of termination. In his application for benefits, Reid stated that he separated from the NYSSBA due to lack of work. Additionally, in each of his weekly certifications for benefits, Reid stated that he had not worked and had not earned more than $405 in the preceding week. However, throughout that time period, Reid was employed by Rensselaer County and earning an annual salary of $30,000.

“Fraudulently securing Unemployment Insurance benefits undermines the integrity of the entire Unemployment system,” John Dormin, Executive Director of the New York State Department of Labor’s Office of Special Investigations said. “Our office will continue to work on behalf of businesses and taxpayers to identify and refer for prosecution those who illegally secure benefits in New York State.”

Reid was arraigned before the Honorable Peter Lynch in Albany County Court on one count of Grand Larceny in the Third Degree and 40 counts of Offering a False Instrument for Filing in the First Degree. If convicted Reid could face up to 7 years in prison.

The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty in a court of law.

The case is being prosecuted by Assistant Attorney General Bridget Holohan Scally of the Public Integrity Bureau. The Public Integrity Bureau is led by Bureau Chief Daniel Cort and Deputy Bureau Chief Stacy Aronowitz. The investigation was conducted by Investigator Mitch Paurowski of the Investigations Bureau, with the assistance of the U.S. Department of Labor’s Labor Racketeering and Fraud Investigations Office. The Investigations Bureau is led by Bureau Chief Dominick Zarrella and Deputy Bureau Chief Antoine Karam. The Criminal Division is led by Executive Deputy Attorney General for Criminal Justice Kelly Donovan.