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5 men arrested in $5M unemployment fraud scheme

LOS ANGELES (AP) -- Federal prosecutors say five Southern California men have been arrested for allegedly running a $5 million scam on the unemployment system.

The indictment announced Wednesday alleges that between January 2008 and March 2011, the defendants registered fake companies with the state and recruited people to pose as laid off employees.

The phony employees then filed for and collected more than $5 million in fraudulent unemployment checks. A portion of the unemployment payments would go back to the defendants.

U.S. attorney spokeswoman Lauren Horwood says the following men were arrested last week and released on bond: 50-year-old Kenneth Kim Parks, 32-year-old Andre Antonio Walters, 31-year-old Gregory Bart Martin, 46-year-old Michael Ray Taylor, Sr. and 27-year-old Michael Ray Taylor, Jr.

If convicted, each faces a maximum of 20 years in prison.

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