In a recent settlement, Potomac Floral Wholesale, Inc., and its CEO, Tsur "Jacob" Reiss, have agreed to pay a hefty sum of $1.25 million to the U.S. government and the State of Maryland. This settlement is the result of allegations that the company scammed the unemployment insurance system at the start of the COVID-19 pandemic, according to a statement from the U.S. Attorney's Office for the District of Maryland.
Engaging in practices that ran afoul of the law, Potomac Floral is accused of having directed some employees to collect unemployment benefits while also having them work without pay. As a result, given that collecting unemployment insurance requires individuals to be, well, unemployed, the company's and Reiss's orders caused false claims to be submitted.
The United States Attorney for the District of Maryland, Erek L. Barron, criticized the actions by saying, "Attempting to unjustly profit from a global pandemic is absolutely wrong," according to the U.S. Attorney's Office press release. He asserted in an official release that unemployment insurance should serve workers displaced from their jobs, not as a loophole for employers to exploit. Troy W. Springer, Special Agent in Charge of the National Capital Region for the DOL-OIG, added that their joint efforts will continue to safeguard the integrity of the unemployment insurance program.
This settlement also addresses claims brought forth under the whistleblower provisions of the False Claims Detailed in the court case United States & State of Maryland ex rel. Travis Gabriel v. Potomac Floral Wholesale, Inc. & Tsur “Jacob” Reiss, the whistleblower Travis Gabriel will be receiving a sum of $243,750.00, for his role in unveiling the deceptive practices.
