Businessman Admits to Va. Unemployment Scam

February 3, 2011

A former business owner has pleaded guilty to scamming the Virginia Unemployment Compensation Program to pay his employees.

Timothy Lynn Skinner pleaded guilty Tuesday in federal court in Roanoke to theft of public money.

U.S. Attorney Timothy J. Heaphy says the 45-year-old Penhook resident submitted reports to the unemployment program falsely stating that his business, Tim's Machine Shop, had laid off employees.

The employees received about $30,000 in unemployment benefits while still working for Skinner's business. Skinner paid the workers the remainder of their regular wages in cash.

Heaphy says Skinner's business saw significant savings as a result of the scam.

Skinner faces up to ten years in prison.

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