Gillette man faces $22K restitution for unemployment fraud
GILLETTE (WNE) — A Gillette man pleaded guilty to misrepresenting or falsifying statements to the Wyoming Department of Workforce Services and was ordered to repay more than $22,000 he received in fraudulent benefits.
Klaus G. Paugsch, 49, pleaded guilty at a May 22 change of plea hearing to one of five counts of making misrepresentations or false statements in violation of the Wyoming Workers’ Compensation Act, according to court documents.
District Judge Stuart S. Healy III dismissed the remaining four counts, per plea negotiations.
In a plea agreement, Paugsch agreed to pay $22,189.52 in restitution to DWS.
Paugsch qualified for temporary disability benefits after suffering a work-related injury in September 2020 while he was a Wyoming Lawn Pro employee, according to an affidavit of probable cause.
Based on Paugsch’s application, he qualified to receive $1,835.16 in benefits each month.
As a condition of the claims, Paugsch was required to report to DWS when returning to work of any kind, including part-time or temporary, and report the gross earnings, when applicable.
In October 2022, Paugsch admitted to working for Walmart, Manpower U.S. Inc. and Thunder Basin Coal Company without notifying DWS and continuing to collect monthly benefits.
He was paid $45,995.08 throughout the 726 days he was approved to receive benefits, of which he fraudulently received $22,189.52 between Oct. 2021 and September 2022, according to the affidavit.
He now faces an open sentencing at his Aug. 29 hearing. The felony conviction carries a maximum penalty of up to 10 years in prison and up to a $10,000 fine.
This story was published on June 6, 2023.