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State Cracking Down On Unemployment Fraud

BOSTON (CBS) -- For 17 months Donna Rafferty has been sending her resume to potential employers. It's been a struggle for the laid off social service worker living on half her income with unemployment insurance benefits.

"You have to be humble to be unemployed these days," she said.

But the state of Massachusetts has been cracking down on some taking advantage of that system, by getting their check while also earning a salary.

WBZ-TV's Beth Germano reports.

"Somehow some people convince themselves if they don't get caught doing it, it might be okay," said Rafferty.

In fact, the state has accused a 48-year-old Gary St. Hilaire, of Lowell, of unemployment insurance fraud. He allegedly earned $42,639 filing for unemployment benefits three different times between January 2007 and May 2009 while also allegedly collecting a $121,000 salary through a lawn service company and not reporting it.

Massachusetts has 285,600 people currently collecting benefits, which can be their lifeline in difficult times.

Tracking fraud is not always easy, according to Judi Cicatiello, director of the Massachusetts Division of Unemployment Assistance.

"That is difficult because it requires investigation, and it does require people recognizing the impact of that on the system," she said.

Which is why the department has a tipline that has received more than 240 calls this year.

With Congress now holding the key to whether Donna Rafferty's benefits will be extended beyond Christmas, she says all she wants to do is work.

"Then somebody double dipping gets caught, and then everybody looks at that and goes those people on unemployment are taking advantage of it," she said.

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