Stratford Woman, 75, Charged In COVID Unemployment Fraud Scam: State

STRATFORD, CT — Three people, including an elderly Stratford woman, were arrested for stealing more than $80,000 in COVID-19-related unemployment assistance, according to the state Division of Criminal Justice and the Connecticut Department of Labor.

Gloria DeBiase, 75, of Stratford, and Christine DeBiase, 39, and Otis D. Paramore, 43, of Branford, were charged as the result of an investigation by the Statewide Prosecution Bureau in the Office of the Chief State’s Attorney. That probe followed a complaint by the Connecticut Department of Labor.

In March 2020, in response to the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security Act, that included multiple temporary federal unemployment insurance programs. More than 1.5 million applications were received by the labor department since.

“The federal pandemic unemployment programs were critical for unemployed workers, but in labor agencies across the country, these programs also triggered a significant increase in criminal activity like identity theft and false claims," Connecticut Department of Labor Commissioner Danté Bartolomeo said.

Partnering with law enforcement, he said, "Is key to ensuring those who tried to defraud the system are held accountable for their actions and funding is returned to the public coffers.”

According to arrest warrant affidavits, Paramore and Christina DeBiase fraudulently collected approximately $68,541 in unemployment benefits by filing false claims under their own names and the names of Paramore’s deceased father and deceased grandparents, the state noted.

Paramore and Christina DeBiase are also accused of assisting Gloria DeBiase in filing false unemployment claims totaling $11,268, according to a news release. Additionally, Christina DeBiase defrauded the labor department "out of a weekly dependent allowance totaling $600," it's alleged.

Paramore and Christina DeBiase are each charged with 11 counts of unemployment fraud, our counts of first-degree identity theft, five counts of third-degree identity theft and first-degree larceny. Gloria DeBiase is charged with unemployment fraud and first-degree larceny.

The Chief State’s Attorney has been working with the state labor department to "identify, investigate, and prosecute alleged fraud in the unemployment compensation program."

The unemployment fraud prosecution unit, announced on May 18, 2021, also works to return stolen funds to the unemployment system and deter future fraud.

“These arrests are the result of significant collaborative efforts by our two agencies,” Deputy Chief State’s Attorney of Operations Kevin D. Lawlor said. “By working together, both agencies are beginning to hold accountable those who allegedly took advantage of an unemployment benefit system that was overwhelmed by the COVID-19 pandemic.”

All three were released on a promise to appear in court. Paramore is due in New Britain Superior Court May 24. Christina and Gloria DeBiase are due in the same court on Thursday.