A federal railroad employee has agreed to pay $24,000 to settle potential violations of the False Claims Act. Chad Gillingwater, a 53-year-old resident of Katy, allegedly submitted false unemployment benefit claims under the Railroad Unemployment Insurance Act during the COVID-19 pandemic. This announcement was made by U.S. Attorney Nicholas J. Ganjei.
The allegations against Gillingwater pertain to the period between April 20, 2020, and August 27, 2021. During this time, he reportedly claimed federal unemployment benefits despite being ineligible due to receiving state unemployment benefits or paid leave from his employer simultaneously. Additionally, he obtained extra benefits through The Coronavirus Aid, Relief and Economic Security Act, which provided extended unemployment insurance for railroad workers affected by the pandemic.
The investigation was conducted by the U.S. Attorney’s Office with assistance from the Railroad Retirement Board - Office of Inspector General. Assistant U.S. Attorney Michelle Luong managed the case.