The New York State Department of Labor and Nassau County District Attorney today announced the sentencing of Long Beach City Councilman Michael Fagan for fraudulently collecting more than $15,000 in state Unemployment Insurance Benefits payments while employed as both a City Councilman and at a hotel membership benefits company.

His sentencing – 30 days in jail and five years of probation – was announced after his conviction on multiple felony and misdemeanor counts. His case was the result of the Department of Labor’s Office of Special Investigations identification that he was collecting the maximum $405 per week even after taking the oath of office. He is the first public elected official to be sentenced to jail time for Unemployment Insurance fraud in New York State.

“This should serve as a warning to all who are elected to serve the public that you are not above the law and if you commit fraud of any kind – you will be caught,” said State Labor Commissioner Peter M. Rivera. “Stealing from the public is unacceptable, illegal, and in this case, nothing less than reprehensible.”

The Nassau County District Attorney filed felony complaints against Mr. Fagan, charging him with Grand Larceny in the Third Degree, Offering a False Instrument for Filing, and Petit Larceny. Councilman Fagan was convicted after a jury trial of 18 Counts of First Degree Offering a False Instrument for Filing (Felonies) and Petit Larceny (Misdemeanor). Councilman Fagan faced a maximum of four years in prison.

Fagan was sentenced by Judge Meryl Berkowitz of the Nassau County Court in Mineola. Berkowitz also ordered Fagen to pay full restitution of $15,783. He will serve his sentence at Nassau County Correctional Facility in East Meadow. Following the felony conviction, he was forced to step down from his position as Councilman.

The Department of Labor partners with employers to aggressively investigate and root out Unemployment Insurance fraud within their businesses. The Department’s Office of Special Investigations investigates cases and refers them to local district attorneys to prosecute. In 2012, the Office of Special Investigations referred 875 cases for criminal prosecution to district attorneys around the state, a 16% increase from 2011.

This criminal case was prosecuted by Marshall Trager, Chief of the Economic Crimes Bureau and Assistant District Attorney William Jorgenson. The case was investigated by State Labor Department Investigators Jay Hong and Cynthia Woerner of the Office of Special Investigations.

Anyone with information about Unemployment Insurance fraud should call the Department of Labor's toll-free fraud hotline at (888) 598-2077.