Melrose Man Charged With Defrauding State Unemployment Insurance

MELROSE, MA — A 68-year-old Melrose man was arrested Tuesday and charged for what federal prosecutors was his role in an unemployment insurance fraud scheme.

Alan Neal Scott was charged by criminal complaint with one count of mail fraud, U.S. District Attorney Andrew Lelling's office said. He appeared in court Tuesday and was detained pending a probable cause and detention hearing set for Thursday.

Charging documents said Scott made numerous fake unemployment insurance claims to the state's Department of Unemployment Assistance. Some of the claims were using other identities — including those of incarcerated people — and all were related to a nonoperational businesses linked to Scott. All the funds were being sent to addresses connected to and accounts controlled by Scott, according to the documents.

The charges carries up to a 20-year-prison sentence and a fine of at least $250,000.