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Monroe gov’t worker gets prison on fraud charges

A former special agent with the Department of Labor from Monroe County has been sentenced for nearly $200,000 in fraudulent charges.

Thomas Hartley, 49, of East Stroudsburg, was sentenced last week by U.S. District Court Judge Robert D. Mariani to 33 months in jail on the charge of mail fraud in connection with multiple schemes to commit fraud.

According to U.S. Attorney Gerard M. Karam, Hartley previously pleaded guilty and admitted that he got $197,366 through multiple fraud schemes.

Between April 2020 and September 2021, Hartley collected Pennsylvania unemployment compensation benefits by claiming that he was unemployed. During that time, Hartley was employed on full-time active duty with the New Jersey National Guard.

He failed to disclose that he was on military leave from his full-time federal civilian employment with the U.S. Department of Labor.

Court papers say Hartley utilized the mail to collect approximately $60,284 in unemployment compensation funds.

He also fraudulently obtained $23,582 in Basic Allowance for Housing funds paid by the Department of the Army, $50,000 in “lost wage” benefits paid by USAA insurance, and $63,500 from his Thrift Savings Plan.

In August 2022, a grand jury charged Hartley with multiple fraud schemes. In addition to the scheme to fraudulently obtaining Pennsylvania unemployment compensation funds, the second superseding indictment also charged that Hartley, while on leave from his position with the Department of Labor and serving with the New Jersey National Guard, submitted false documents to the Department of the Army and obtained approximately $23,580 in housing allowance funds to which he was not entitled.

Hartley was also charged with fraud in connection with the filing of a lost wage claim with USAA Insurance following an automobile accident.

Hartley falsely claimed that he had lost wages, resulting from an automobile accident, when Hartley was suspended without pay from his employment with the Department of Labor as a result of an ongoing criminal investigation. Hartley collected approximately $50,000 in lost wage benefits to which he was not entitled.

Hartley is also charged with obtaining funds from his Thrift Savings Plan by falsely claiming that he was not married. Hartley transferred the funds to himself personally, or to a bank account solely in his name, without the knowledge or consent of his wife.

The charges resulted from an investigation conducted by the Department of Labor, Office of Inspector General, Office of Special Investigations; the United States Army, Criminal Investigation Division; and the USAA Insurance Special Investigations Unit. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.