Alamdar Hamdani U.S. Attorney | U.S. Attorney for the Southern District of Texas
A federal railroad employee has agreed to pay $24,000 to settle potential violations of the False Claims Act. The settlement concerns unemployment benefit claims submitted under the Railroad Unemployment Insurance Act during the COVID-19 pandemic. U.S. Attorney Nicholas J. Ganjei announced the resolution.
Chad Gillingwater, a 53-year-old resident of Katy, allegedly made false claims for federal unemployment benefits between April 20, 2020, and August 27, 2021. According to authorities, Gillingwater was not eligible for these funds as he was already receiving state unemployment benefits or paid leave from his employer at that time.
In addition to these claims, Gillingwater received further benefits through The Coronavirus Aid, Relief and Economic Security Act. This act extended unemployment insurance benefits specifically 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.
