Manchester Resident Sentenced for Unemployment Fraud
A local individual must pay $44,000 in restitution after collecting benefits while employed full-time.
Updated on Oct. 21, 2026 in Employment
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A federal court sentenced a Manchester resident to one year in prison for collecting $36,000 in unemployment benefits while working full-time. The individual must now pay $44,000 in restitution to the New Hampshire Department of Employment Security.
Why it matters
This case highlights the strict enforcement of eligibility rules for state unemployment programs, where holding full-time employment while claiming benefits constitutes fraud. Such legal actions recover public funds and reinforce the necessity of reporting all income to state agencies.
The court ordered $44,000 in total restitution, which includes the $36,000 in unemployment benefits collected while the individual earned $68,000 in landscaping wages.
The players
Nicholas Colarusso
The individual sentenced for collecting unemployment benefits while employed full-time.
New Hampshire Department of Employment Security
The state agency responsible for managing unemployment benefits and pursuing restitution for fraudulent claims.
The details
The individual collected benefits between April 2020 and April 2021 while simultaneously maintaining full-time employment as a landscaper. Federal rules require recipients to disclose all earned income, and failing to do so while continuing to draw benefit payments leads to prosecution for unemployment fraud. The sentence includes 12 months in prison, with 11 of those months suspended, requiring the defendant to repay the state for the full amount of the improperly collected benefits.
Timeline
April 2020: Fraudulent benefit collection began.
April 2021: Fraudulent benefit collection ended.
October 21, 2026: Sentencing occurred in Manchester.
Money Landscape
This case follows established enforcement patterns for New Hampshire unemployment insurance eligibility requirements regarding unreported income. It underscores the financial risks of failing to report employment earnings when claiming state benefits.
If you receive unemployment benefits, you must update your local state agency immediately if you return to work or earn any income. Failure to report wages can lead to significant restitution demands and legal penalties that impact long-term household financial stability.
The takeaway
Unemployment fraud carries severe legal and financial consequences, including court-ordered restitution that far exceeds the original benefit amount. Always verify your eligibility status with the New Hampshire Department of Employment Security whenever your work hours or income change.
Further reading
For broader guidance on managing benefits, visit our Employment section.
Live Poll
Should government agencies implement stricter verification processes for unemployment benefits to prevent fraud?
