State Employee Sentenced For Embezzling $51K In Unemployment Benefits

A former Washington State Employment Security Department employee was sentenced after admitting she stole more than $51,000 from programs she helped administer, receiving probation, home confinement, restitution, and a fine.

On July 28, 2026, United States District Court Judge Rebecca L. Pennell sentenced Tasha Hoggatt, age 51, of Valencia, California, to five years of probation, including six months of home confinement, after she pleaded guilty to theft concerning programs that receive federal funds. The court also ordered Hoggatt to pay $51,403 in restitution and a $4,000 fine. Those penalties reflect both criminal accountability and the financial remedy the court imposed for the money taken.

Federal filings show Hoggatt worked for the Washington State Employment Security Department, first as a Human Resource Consultant from October 1, 2021, to October 31, 2022. She later returned to the agency and was employed as a Benefits Specialist between May 16, 2024, and September 19, 2024. Her roles put her in positions that touched programs funded by state and federal dollars.

While employed at ESD, Hoggatt submitted false Paid Family Medical Leave Act applications in her own name and in the names of two family members, using fabricated medical details and documents that bore forged doctor signatures. Those fraudulent claims were part of the scheme that allowed her to divert benefits meant for legitimately eligible families. The documents and signatures were explicitly described in court records as forged and knowingly false.

The scheme extended beyond paid leave applications. Between October 31, 2022, and May 16, 2024, Hoggatt applied for Washington State unemployment insurance benefits while falsely stating she was unemployed. In reality, she was employed in California during that period, yet she represented herself as out of work to collect additional benefits. Court papers say those false submissions resulted in $51,403 taken from Washington State’s Paid Family Leave and Unemployment Insurance programs.

“Washington State Employment Security Department uses state and federal funds to provide resources for individuals in need. When people take advantage of these programs, they should expect to be prosecuted by United States Attorney’s Office; this is especially true when someone, like Hoggatt, works for the Department,” said First Assistant United States Attorney Pete Serrano. The comment underscores that employees who manage or touch benefit systems face greater scrutiny because their access can be abused.

“Tasha Hoggatt abused her position at the Washington Employment Security Department to steal more than $51,000 in benefits meant for workers in genuine need,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. “Today’s sentence underscores a simple truth: if you exploit federal programs and betray the public’s trust, my office will pursue you relentlessly. Our dedication to working with our law enforcement partners remains unwavering, as we uphold a rigorous zero-tolerance policy towards any misuse of our systems. Those who seek to exploit these programs will inevitably be identified and brought to justice. Accountability is not just a promise—it’s a guarantee.”

The Department of Labor, Office of the Inspector General led the investigation into the matter, compiling the evidence that supported the guilty plea. The case was prosecuted by Assistant United States Attorney Jeremy J. Kelley, who handled the federal courtroom work. Those agencies coordinated to move the matter from investigation through to sentencing in federal court.

Beyond the criminal charges, the restitution requirement of $51,403 aims to return money to the programs that fund unemployment and paid family leave benefits for workers. The $4,000 fine and the period of home confinement reinforce the court’s intent to impose consequences that fit the breach of trust. For taxpayers and program recipients, the outcome is meant to deliver some measure of accountability and recovery.

This case highlights risks that arise when employees entrusted with access to benefits exploit that access for personal gain. The facts in the court record show false applications, forged supporting documents, and misrepresentations about employment status. The legal result is a probationary sentence, financial penalties, and a record that follows the defendant beyond the immediate punishment.

Investigators and prosecutors emphasized coordination and persistent enforcement in cases involving misuse of benefit programs, and this prosecution reflects that approach. The Department of Labor’s Office of the Inspector General brought the case to light, and federal prosecutors took it through plea and sentencing.

https://x.com/USLaborIG/status/2082528777494511995

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